US Stock markets almost erased gains in Tuesday as Oil rally turned into abrupt retracement, dragging down commodity and oil firms. The drop could be also attributed to the downbeat data from China, renewing concerns over world economy slowdown. Futures on US benchmark, WTI, plunged more than 4% after official session close, posting the biggest decline since 11 February.
According to the views of Goldman Sachs, recent Oil upturn didn’t have reasonable grounds under it as Oil prices should stay depressed for a longer period to bring market into balance later this year. The shares of biggest Oil producers Exxon and Chevron, appearing in Dow index, tumbled more than 2 percents. S&P energy sector plunged 4,1 percents.
Trade data from China which came out yesterday disappointed investors as it showed Chinese industrial sector contracts faster that it was expected. Exports decline in February was the worst for six years, while drop in imports for consecutive 16 week drove shares of raw material companies into red, with 2 percent loss average.
Dow Jones dipped 0,64% to 16.964,1 points, S&P 500 sunk 1,12% to 1.979,26, Nasdaq Composite lost 1,26% with 4.648,83 point at Tuesday close. Chipmaker Micron was the worst performer, which shares lose 7.9%, dropping to $10,66.
Oil prices managed to rebound in Wednesday session, WTI advanced 0.36% to $36.62, Brent gained 0.48% to $39.85, consolidating before an attempt to occupy $40 level. Gold fell 0.33% to 1,258.60 as investors drop safe heavens to catch the wave of equity upturn.