US Stocks Fall as Oil Production Cuts Intensify


US stocks were set to open lower in Monday trading, as OPEC+ producers agreed to further reduce oil output. With rising oil prices bringing inflation worries, bets shifted towards the Federal Reserve having to hike interest rates in their next meeting. Major stocks like Apple Inc, Inc, Microsoft Corp and Alphabet Inc all declined in premarket trade. Meanwhile, energy stocks such as Chevron Corp and UnitedHealth Group Inc made gains on the news.

Tesla Inc fell after posting modest quarter-on-quarter sales growth, while a softer cut to 2024 Medicare Advantage payments by the United States helped UNH shares grow. According to CME Group’s Fedwatch tool, traders are currently betting on a 25-basis point rate hike in May as opposed to a pause.

In terms of data, investors will pay attention to S&P Global and ISM manufacturing PMI data for March. Meanwhile, the start of the first-quarter earnings season is expected to begin in the coming weeks.

American Airlines Group Inc and Delta Air Lines Inc saw stocks slide on the higher crude prices, while McDonalds Corp gained 0.5% after the burger chain announced plans to close its offices and inform corporate employees about layoffs.

The company mentioned in this article is Chevron Corporation. It is an American multinational energy corporation engaged in crude oil and natural gas energy production, refining, and marketing activities. Chevron is one of the world’s largest integrated oil companies, with operations across the petroleum industry from exploration and production to refining, marketing and transportation.

The person mentioned in this article is Paul Nolte, Senior Wealth Adviser and Market Strategist at Murphy & Sylvest. Paul Nolte is a highly respected financial analyst and a frequent commentator on national television networks. He is a frequent contributor to papers, magazines, and radio programs. He is also a regularly featured speaker at conferences and universities.