U.S. and global markets are still reacting negatively amid the surging oil prices that followed the Saudi Arabian oil facility attacks over the weekend. Tuesday saw crude oil prices lower almost 6% following a statement from the country's Energy Minister Prince Abdulaziz bin Salman stating that the country should have the oil production capabilities and output restored back to pre-attack levels by the end of September.
Here's how the U.S. markets settled Tuesday:
NASDAQ Composite Index (QQQ): +0.40% or 32.47 points
Dow Jones Industrial Average (DIA):+0.13% or 33.98 points
S&P 500 Index (SPY): +0.26% or 7.74 points
Following President Donald Trump's decision to release crude oil from the U.S.'s Strategic Petroleum Reserve, many market analysts have debated whether the sudden oil market shock over the weekend will affect the Federal Reserve's decision to ease their monetary policy further. The central bank officials have begun the first of two days of policy deliberations Tuesday.
Higher oil prices put pressure on economic inflation, so the Federal Reserve's decision will most likely reflect the sudden change in the global markets early this week and how the oil price increases are affecting various market sectors.
In other news, U.S. industrial production and manufacturing output both rose by more than expected in August. There was much concern around these sectors amid the trade war between China and the U.S., so it is positive to see that they are both doing positively as the year is drawing to a close.
In stock news, the anticipated IPO of the We Company, which is the parent company of shared workspace leasing company WeWork, has delayed plans to go public after failing to gain enough investor support. The company stated that the IPO will be completed by the end of the year.
Tomorrow's update will hope to see announcements from the Federal Reserve surrounding their upcoming policy at the close of deliberations Wednesday, as well as more oil price and stock updates as Saudi Arabian's drone attacks aftermath continues to affect the global economy.