The U.S. stock market experienced a volatile trading day on Wednesday, resulting in a mixed outcome. The surge in crude oil prices contributed to growing concerns about inflation, which already existed due to fears of higher interest rates for an extended period of time. The market also reacted to the ongoing government shutdown situation, with Senate Majority Leader Chuck Schumer announcing that the Senate will vote to keep the government open.
Despite starting the day with gains, all three major indices quickly gave up their gains and moved lower throughout the day. However, Schumer’s comments provided some optimism, and the markets recovered their losses and remained close to the flatline until the end of the session. The tech-heavy Nasdaq Composite closed 0.22% higher, the S&P 500 ended little changed, and the Dow retreated by 0.20%.
Energy stocks were the top gainers as crude oil prices jumped nearly 4% following a larger-than-expected drop in U.S. crude supplies. This surge in oil prices added to concerns about inflation, as higher energy prices can contribute to overall inflationary pressures. Daniel Jones, investing group leader of Crude Value Insights, commented on the situation, stating that the optimism driven by progress in the potential government shutdown was short-lived due to the uncertainty surrounding it. Furthermore, rising Treasury yields throughout the day added to the market’s unease.