US stocks move lower, oil prices pull back after spike

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A woman wearing face a mask walks past a bank’s electronic board showing the Hong Kong share index in Hong Kong, Tuesday, July 6, 2021. Asian shares were mixed in muted trading on Tuesday as oil prices surged higher after a meeting of oil producing nations was postponed. (AP Photo/Kin Cheung)

NEW YORK (AP) — Stocks were lower in early trading Tuesday, as U.S. trading resumed after the Independence Day holiday and investors reassess after last week’s record highs.

The S&P 500 index was down 0.5% as of 10:30 a.m. Eastern. The Dow Jones Industrial Average fell 0.9% and the Nasdaq Composite was down 0.1%.

Oil prices pulled back after jumping overnight when talks among members of the OPEC cartel and allied oil producing countries broke off in the midst of a standoff with the United Arab Emirates over production levels. The U.S. benchmark crude oil price fell 1% to $74.49; it earlier rose to $76.98, the highest level since November 2014.

With oil prices pushing toward $80 a barrel, that “raises the risk of a price war if the conflict escalates, like in March last year,” Harpreet Bhal of ActivTrades said in a commentary.

The market is currently in a summer lull, with investors having little go act on until next week, when corporate earnings season starts up again. U.S. markets have a holiday shortened week this week, since markets were closed on Monday. Most of the focus remains on inflation and what the Federal Reserve will do if inflation remains high.

The yield on the benchmark 10-year U.S. Treasury note was down to 1.37%, a sharp decline from 1.44% on Friday and the lowest level since February.

Shares of ride-hailing company Didi Global dropped 20%. That follows a 5% drop Friday after China announced it would investigate the cybersecurity practices of three ride technology companies, including Didi. The government has also announced cybersecurity reviews of Full Truck Alliance, the operator of two truck logistics platforms and Kanzhun Ltd., operator of an online recruitment outfit. Full Truck dropped 20% and Kanzhun fell 11%.

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