- S&P 500 Energy Index rises sharply on hopes of oil output cuts.
- Norwegian Cruise Line Holdings Ltd (NCLH) shares suffer heavy losses%.
Major equity indexes in the US started the day in the positive territory on Thursday but struggled to push higher. The weekly data from the US showed that Initial Jobless Claims surged to a new record high above 6 million to weigh on the market sentiment.
However, rallying crude oil prices helped energy shares find demand and Wall Street’s main indexes turned positive on the day led by the S&P 500 Energy Index, which was last up 7% on a daily basis.
US President Trump said Saudi Arabia and Russia could come to terms and introduce an oil output cut of around 10 million barrels per day. Following this announcement, Saudi Arabia confirmed that they called for an emergency OPEC+ meeting. Although it’s unclear if OPEC and non-OPEC producers will agree to an output reduction in the near-term, the barrel of West Texas Intermediate looks to close the day more than 15% higher near $25.
S&P 500 top movers
Occidental Petroleum Corp (OXY) capitalized on rising crude oil prices and was last up 17.1% on the day as the top-performer. Another energy company, TechnipFMC PLC (FTI) is adding 16%. On the other hand, Norwegian Cruise Line Holdings Ltd (NCLH) is erasing 13.6% as the top-decliner.