- Stocks rose on Tuesday as oil prices tumbled and investors awaited a decision from the US Federal Reserve on the direction of interest rates.
- Oil slumped after Reuters reported Saudi Arabia’s output is expected to return to normal levels in two to three weeks.
- WeWork has reportedly postponed its initial public offering over concerns of weak investor demand.
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Stocks climbed on Tuesday as oil prices fell and the Federal Reserve began its two-day meeting to determine the direction of interest rates.
US monetary policy has been key a focus over the last several weeks as other central banks around the world have lowered interest rates to stave-off slowing growth. The Fed is expected to follow suit and cut borrowing costs by 25 basis points in September.
Oil plunged on Tuesday after Reuters reported Saudi Arabia’s output is expected to recover in two to three weeks. Saudi Arabia is also close to restoring 70% of its daily production of 5.7 million barrels cut by an attack on key facilities over the weekend. The drop in prices parred some of oil’s historic price gain on Monday.
Here’s a look at the major indexes as of the 4 p.m. close on Tuesday:
- The S&P 500 rose 0.26%, to 3,005.70.
- The Dow Jones Industrial Average climbed 0.13%, to 27,110.80.
- The Nasdaq Composite jumped 0.40%, to 8,186.02.
WeWork has reportedly delayed its initial public offering in a “last-minute” decision on Monday. The shared-workspace company postponed the offering over concerns that not enough investors would be interested in the listing.
Shares of Chipotle climbed as much as 4% after the company announced a new carne asada meat option. The meat will be offered for a limited period of time and represents the restaurant’s first new protein item in three years.
Warren Buffett-backed Kraft-Heinz fell as much as 4.7% after Brazilian private equity firm 3G Capital Partners sold 25.1 million shares, cutting its stake in the company by about 9%. Buffett’s Berkshire Hathaway is the only shareholder with a larger stake in Kraft, holding about 26.7% of the company’s shares.
Within the S&P 500, these were the largest gainers:
And the largest decliners:
Real estate stocks rose by 1.4%, while energy shares dropped 1.5%. Materials rose by 0.7%, while utilities climbed 0.9%.