Dow registers steepest monthly loss in more than five years in August 2015
The Dow Jones Industrial Average ended August with the steepest monthly loss in more than five years on Monday, 31 August 2015, while the benchmark S&P 500 and the Nasdaq Composite recorded the largest monthly declines since May 2012. Surging oil prices lifted energy stocks on Monday, but markets overall were weighed down by continued worries about China's slowing economy and the uncertainty over the timing of a rate increase by the Federal Reserve. Fed policy makers have left the option of a September rate increase wide open.
The Dow Jones Industrial Average lost 114.98 points, or 0.7%, to finish at 16,528.03. That left the index with a 6.6% monthly loss, the largest percentage decline since May 2010. The S&P 500 closed 16.69 points, or 0.8% lower at 1,972.18, recording a 6.3% drop over the month, the steepest since May 2012. The Nasdaq Composite ended the day down 51.82 points, or 1.1% at 4,776.51 and fell 6.9% over the month.
Monday's slump followed declines in global equity markets. The Shanghai Composite slid 12.5% during August, and lost more ground on Monday. Stocks were hit by a report that the Chinese government will no longer make large stock purchases to prop up the markets.
Economic data this week will help gold traders gauge prospects for Fed action this year. Data Monday showed that Chicago PMI fell slightly in August. Friday is the data highlight for the week with the release of monthly employment figures.
Among stocks under focus, Staples and Office Depot said late Friday they will delay the closing of their merger to provide the Federal Trade Commission with more information on the deal. Shares in Staples rose 3.4%. Twitter jumped 3.6% after the social-networking company was upgraded at SunTrust Robinson Humphrey.
Crude oil futures took a sudden, sharp turn higher on Monday, 31 August 2015 to score a monthly gain of more than 4% and settle at their highest level in nearly 6 weeks. Prices were on track to suffer a third straight monthly loss until a U.S. government report showed a roughly 1% decline in monthly crude production and a bulletin from the Organization of the Petroleum Exporting Countries expressed the group's concerns over the low price of oil.
October West Texas Intermediate crude settled at $49.20 a barrel, up $3.98, or 8.8%, on the New York Mercantile Exchange. Based on the most-active contracts, prices were up about 4.4% for the monththe first gain since May. Including Monday's rally, WTI prices have tallied a three-session gain of 27.5%, or more than $10 a barrel. Prices had been falling early Monday as U.S. equities declined, raising more concerns about a potential slowdown in energy demand, and as traders gauged the likelihood of a Federal Reserve interest-rate hike this year.
Meanwhile, in a report Monday, the Energy Information Administration estimated June U.S. crude output at 9.3 million barrels a day, down 1.1% from a revised May figure. A separate report released earlier Monday by the EIA had already hinted at the production decline but the full report had more detailed information on state output.
The dollar was marginally weaker across major currencies.
Bullion prices ended in a mixed mode on Monday, 31 August 2015 at Comex. Gold prices ended the U.S. day session little lower but right around the unchanged level on the day on Monday. Modest early losses were erased when crude oil prices staged another big rally, to give beleaguered raw commodity sector bulls some hope that sector leader crude has put in a market bottom. Silver gained.
Gold for December delivery lost $1.50, or 0.1%, to settle at $1,132.50 an ounce on Comex. It saw a monthly gain of around 3.4%, which was the largest since January's 8% surge. December silver tacked on 3.7 cents, or 0.3%, to $14.586 an ounce, losing around 1.1% compared with the $14.745 settlement of the September contract on July 31.
Volume was again relatively heavy with 1.08 billion shares changing hands at the NYSE.
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