By Caroline Valetkevitch
NEW YORK (Reuters) -Global stock indexes mostly rose on Monday with U.S. tech-related shares gaining, while oil prices dropped as price cuts by top exporter Saudi Arabia overshadowed worries about the Middle East.
Shares of Boeing were down about 8% and weighed on the Dow Jones industrial average, which hit a two-week low. The U.S. Federal Aviation Administration ordered the temporary grounding of some Boeing 737 MAX 9 jets fitted with a panel that blew off an Alaska Air Group jet in midair on Friday.
The U.S. dollar and Treasury yields fell. Investors awaited this week’s U.S. inflation data and weighed when the Federal Reserve may start cutting interest rates.
Thursday will bring consumer price inflation data for December. It is expected to show that headline inflation rose 0.2% in the month, for a 3.2% annual gain.
Investors also look forward to quarterly results from companies. Major banks including JPMorgan Chase get the next U.S. reporting period under way with reports due Friday.
The Dow Jones Industrial Average fell 142.43 points, or 0.38%, to 37,325.69, the gained 16.03 points, or 0.34%, to 4,713.41 and the gained 141.19 points, or 0.97%, to 14,665.26.
The news on Boeing “could impact the airline sector because the 737 (MAX) is a real workhorse of many airlines’ fleets,” said Kim Forrest, chief investment officer at Bokeh Capital Partners.
The S&P 500 lost 1.5% last week to break a nine-week winning streak, its longest since 1989. The index’s 24% rally in 2023 means valuations are looking stretched, so much is riding on the upcoming results season.
The MSCI world equity index, which tracks shares in 49 nations, gained 0.15%, while European stocks were up 0.3%. Japan’s Nikkei was closed for a holiday, while Chinese blue chips lost 1.1% to hit near five-year lows.
In energy, U.S. crude dropped 4.51% to $70.47 a barrel. Brent crude fell to $75.65 per barrel
Saudi Arabia on Sunday cut the February official selling price (OSP) of its flagship Arab Light crude to Asia to the lowest level in 27 months. Meanwhile, geopolitical tensions were also on the radar as disruptions in the Red Sea raised shipping costs in Europe, while the Israeli conflict with Hamas threatened to spread to Lebanon.
In Treasuries, the yield on benchmark 10-year Treasury notes slipped to 3.97%.
The dollar dropped 0.41% against the yen to 144.06, while the European single currency was up 0.2% on the day at $1.0967, and the U.S. dollar index, which tracks the greenback against a basket of currencies of other major trading partners, was down 0.3% at 102.14.
Investors also digested news from Washington where U.S. congressional leaders agreed on a $1.6 trillion spending deal aimed at averting a partial government shutdown.
On Friday, a Labor Department report showed U.S. employers hired more workers than expected in December, while a survey from the Institute for Supply Management (ISM) showed activity in the services sector fell in December, pointing to a weaker economy.
(Additional reporting by Karen Brettell in New York; Johann M Cherian and Ankika Biswas in Bengaluru; and Nell Mackenzie in London; editing by Dhara Ranasinghe, Jason Neely, Chizu Nomiyama and Sharon Singleton)
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