Stock markets in the United States opened with a slight decline, surrendering a portion of their gains from May, which marked their strongest performance since 2023. During early Monday trading, the S&P 500 declined by 0.3%. The Dow Jones Industrial Average dropped 174 points, representing a 0.4% decrease, whilst the Nasdaq composite fell by 0.2%.This was driven by crude oil prices that surged more than 4%. Despite OPEC+ nations agreeing to boost their output further, market analysts noted this decision was largely anticipated by investors. Additionally, Ukrainian strikes within Russian territory over the weekend heightened concerns regarding global oil and gas distribution.Global trade tensions also contributed to the decline as Beijing dismissed US claims regarding breach of tariff reduction agreements. Simultaneously, tensions with the European Union escalated following Trump’s proposal to increase steel duties twofold.This was in line with the expectation of Wall Street opening on Monday. The intensifying Russia-Ukraine situation over the weekend heightened market concerns and drove oil prices upward.Prior to Monday’s opening bell, S&P 500 futures declined 0.4%, whilst Dow Jones Industrial Average futures decreased 0.3%. The Nasdaq futures showed a reduction of 0.6%.The escalating Russia-Ukraine conflict, coupled with OPEC+’s decision to implement a smaller-than-anticipated production increase, led to rising oil prices and gains in oil company shares.Devon Energy experienced a 2.5% increase, whilst Chevron, Exxon and ConocoPhillips each gained between 1% and 1.5%.The US benchmark crude oil rose by $2.54, exceeding 4%, reaching $63.33 per barrel. Simultaneously, Brent crude, the global benchmark, increased by $2.34 to $65.12 per barrel.Steel sector shares witnessed substantial gains after President Donald Trump announced to Pennsylvania steelworkers on Friday his decision to increase steel import tariffs to 50%, doubling the previous rate to safeguard their industry. This significant increase could potentially raise prices for steel, a crucial material in housing, automotive and various other manufactured goods.
