U.S. stocks retreated, following equities’ biggest one-day gain in three months, as oil prices extended their declines to weigh on energy and raw-material companies.
Chevron Corp. and Exxon Mobil Corp. fell more than 2.9 percent as energy producers in the Standard & Poor’s 500 Index slumped for a fourth day. Chipotle Mexican Grill Inc. fell 2.8 percent after rescinding its 2016 forecast in the wake of an E. coli outbreak. Keurig Green Mountain Inc. surged 73 percent after agreeing to be acquired by a JAB Holding Co.-led investor group for about $13.9 billion in cash.
The S&P 500 fell 0.9 percent to 2,073.12 at 12:09 p.m. in New York, after jumping 2.1 percent on Friday. The Dow Jones Industrial Average lost 153.46 points, or 0.9 percent, to 17,694.17. The Nasdaq Composite Index declined 0.8 percent.
Crude prices extended losses after falling 2.7 percent Friday amid speculation a record global glut will be prolonged as the Organization of Petroleum Exporting Countries effectively abandoned its long-time strategy of limiting production to control prices. West Texas Intermediate futures fell 4.8 percent Monday to $38.07.
Oil’s plunge of more than 40 percent in the past year has hampered recoveries in the U.S. and Europe as capital spending has waned and inflation has remained below central-bank targets.
Source : Bloomberg