Oil Prices Sink To $55, Lowest In Nearly 5 Years: What's Moving Markets Tuesday?

Wall Street lacked clear direction on Tuesday, as mixed labor market data failed to ignite a fresh wave of risk-on sentiment.

Nonfarm payrolls rose by 64,000 in November, topping expectations of 50,000. However, the unemployment rate climbed to 4.6%, the highest level since September 2021.

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October figures, delayed by more than two months due to the government shutdown, added further noise. Payrolls fell by 105,000, largely reflecting 157,000 layoffs in the public sector. Private payrolls increased by 52,000.

Expectations for the Federal Reserve's January rate decision remained broadly unchanged following the release. Fed funds futures continued to price a 25% probability of another 25-basis-point rate cut, in line with pre-data levels.

The Nasdaq 100 edged 0.2% higher to 25,121. The Dow Jones Industrial Average and the S&P 500 posted marginal declines.

Small caps underperformed. The Russell 2000 slipped 0.6%, on track for a third consecutive session of losses.

Oil prices took center stage. West Texas Intermediate crude sank to $55 a barrel, down 2.2% and marking a fourth straight session of losses. Prices hit their lowest levels since January 2021.

Growing expectations that the war in Ukraine could move toward a resolution have raised prospects of easing restrictions on Russian oil exports. The outlook has raised supply risks in an oil market already in surplus.

Energy stocks extended their slump. The sector fell 2.2% on the day, continuing to lag the broader market.

In commodities, gold was little changed at $4,300 an ounce. Silver slipped 0.6% to $62 an ounce.

Cryptocurrencies staged modest rebounds after recent declines. Bitcoin (CRYPTO: BTC) climbed nearly 2%, reclaiming levels above $87,000.

Tuesday’s Performance In Major U.S. Indices, ETFs

According to Benzinga Pro data:

• The Vanguard S&P 500 ETF (NYSE:VOO) slipped 0.3% to $623.80.
• The SPDR Dow Jones Industrial Average (NYSE:DIA) fell 0.4% to $482.89.
• The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) was little changed at $610.43.
• The iShares Russell 2000 ETF (NYSE:IWM) underperformed, sliding 0.84% to $249.81.
• The Communication Services Select Sector SPDR Fund (NYSE:XLC) outperformed, up 0.1%; the Energy Select Sector SPDR Fund (NYSE:XLE) lagged, down 2.6%.

Russell 1000’s Top 5 Gainers On Tuesday

Russell 1000’s Top 5 Laggards On Tuesday

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