SP 500 ends higher as oil stocks rally; Tesla tumbles

SP 500 ends higher as oil stocks rally; Tesla tumbles

Tesla Inc (TSLA.O) dropped 6.1% after disclosing March-quarter deliveries rose just 4% from the previous quarter, even after CEO Elon Musk slashed car prices in January to boost demand.











Reuters









April 04, 2023 / 06:05 AM IST





S&P 500 ends higher as oil stocks rally; Tesla tumbles



The S&P 500 ended higher on Monday, lifted by energy stocks following surprise cuts to the OPEC+ group's oil output targets, while Tesla tumbled after its electric vehicle deliveries for the first quarter disappointed investors.

Tesla Inc (TSLA.O) dropped 6.1% after disclosing March-quarter deliveries rose just 4% from the previous quarter, even after CEO Elon Musk slashed car prices in January to boost demand.

The S&P 500 energy sector index (.SPNY) surged 4.9% after Saudi Arabia and other OPEC+ oil producers announced unexpected output cuts that could push oil prices toward $100 a barrel. Chevron Corp (CVX.N), Exxon Mobil Corp (XOM.N) and Occidental Petroleum Corp (OXY.N) all rallied more than 4%.

However, the prospect of higher oil costs added to inflation worries on Wall Street just days after evidence of cooling prices raised expectations that the U.S. Federal Reserve might soon end its aggressive monetary tightening campaign.

"The decision to cut production is a headwind for inflation ...