US: Stocks mostly rise as oil prices jump

WALL Street stocks mostly advanced Monday (Apr 3) following weak US manufacturing data that added to concerns about slowing growth though easing worries about more interest rate hikes.

The Dow Jones Industrial Average rose 1.0 per cent to 33,601.15.

The broad-based S&P 500 gained 0.4 per cent to 4,124.51, while the tech-rich Nasdaq Composite Index shed 0.3 per cent to 12,189.45.

An industry survey of manufacturers by the Institute for Supply Management showed activity shrank more sharply than expected in March, notching a fifth consecutive month of contraction as producers moved to match slowing demand.

The figures came as the Opec+ group of crude exporters enacted a surprise production cut, which was seen as a step due to respond to a slowing macroeconomy.

“There is a perception that the lower production from Opec will largely be offset by falling demand and the global economy slowing,” said LBBW’s Karl Haeling.

The yield on the 10-year US Treasury note declined, suggesting lowered odds for more Federal Reserve interest rate increases.

Petroleum-linked companies rallied with oil prices. Chevron rose 4.2 per cent while Halliburton surged 7.8 per cent.

Tesla fell 6.1 per cent, however, as markets digested the latest production and sales figures for the high-flying electric carmaker.

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US: Wall St opens lower as oil output cut reignites inflation worries

Global deliveries for Elon Musk’s auto company were 422,875 in the first quarter, which was below the level of some estimates.

Illumina fell 1.1 per cent after the Federal Trade Commission ordered the life sciences company to divest Grail, charging that the US$7.1 billion acquisition threatens competition in the cancer test market.

Illumina said it will challenge the decision in federal court. AFP