Economics
U.S. Equities Retreat as Oil Supply Surge Reignites Haven Demand
- Treasuries to yen advance with U.S. crude below $31 a barrel
- Energy producers drive S&P 500 losses with consumer shares
Have Markets Returned to the Old Normal?
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U.S. stocks fell, snapping a three-day rally as the highest American oil inventories in 86 years sent crude below $31 a barrel, fueling demand for haven assets from Treasuries to gold.
Energy producers posted the biggest declines in the Standard & Poor’s 500 Index, with investors betting on defensive equities less tied to economic growth, such as utility and telephone stocks. Oil pared a second day of gains to close at $30.77 a barrel after the U.S. data, while gold jumped more than 2 percent. Yields on 10-year Treasury notes fell to as low as 1.75 percent, halting a three-day advance. Despite the U.S. losses, emerging market stocks rose for a fourth straight day, to their highest level since Jan. 6.