Lower crude prices weighed on major energy companies. Exxon Mobil and Chevron each fell about 5%, while the declined 3.9%. The drop marked a reversal from gains recorded while disrupted oil supplies supported higher prices.
Investors also turned their attention to the Federal Reserve’s policy meeting later this week. Officials are widely expected to keep interest rates unchanged. However, lower oil prices may ease some pressure from energy-driven inflation if the decline lasts.
“The hope is that maybe with some pressure off inflation, at some point the Federal Reserve may be able to cut interest rates,” Dakota Wealth senior portfolio manager Robert Pavlik said. Yet the path remains uncertain, as May inflation data showed rising energy costs feeding into consumer prices.
In company news, Paramount Skydance rose after the Justice Department cleared its planned acquisition of Warner Bros. Discovery. after announcing a $22 billion deal to buy Roku, while Roku shares declined 2.5%.
Advancing stocks outnumbered declining shares by more than three to one on both the New York Stock Exchange and NASDAQ. The S&P 500 recorded 38 new 52-week highs, while the NASDAQ Composite posted 165.
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