Energy stocks opened deep in the red, alongside sliding equity futures and oil and natural gas prices. Investors are continuing to take down risk exposure amid rising rates and the ultra-hawkish tone set by Federal Reserve Chairman Jerome Powell on Wednesday. Trading volumes will be elevated today due to the quarterly expiration of futures and options, as well as index rebalancing.
Oil fell almost 3% on Friday as the market assessed the aftermath of interest rates hikes by central banks, but was still poised for a weekly gain amid supply disruption concerns and hopes for a recovery of demand in China. The U.S. Federal Reserve indicated it will raise interest rates further next year, even as the economy slips toward a possible recession. On Thursday, the Bank of England and the European Central Bank raised interest rates to fight inflation. "There are so many driving forces in the oil market at the moment and a more somber economic outlook on the back of the hawkish central bank message this week appears to be the dominant one going into the weekend," said Craig Erlam, analyst, at OANDA.
Natural gas futures are down 7%, tracking weaker oil and equity futures in today’s risk-off session.
Stocks could face another explosion of volatility Friday as $4 trillion of options expire in ‘quadruple witching’
Stocks have been on a wild ride this week, and conditions could still get weirder as traders brace for...
Stocks have been on a wild ride this week, and conditions could still get weirder as traders brace for “quadruple witching”on Friday when a flurry of equity options and futures contracts expire.
In particular, options contracts tied to $4 trillion in stocks, stock-index futures, and exchange-traded funds are set to expire, making Friday potentially the busiest day for options traders this year, according to data compiled by Rocky Fishman, the head of index volatility research at Goldman Sachs.
The term “quadruple witching” denotes days when a host of equity-linked options and futures contracts expire, as TradeStation explains. It only happens four times a year, once every quarter.
Dow ends down over 750 points to book its worst day in three months as recession fears mount
U.S. stock indexes finished sharply lower on Thursday with the...
U.S. stock indexes finished sharply lower on Thursday with the Dow Jones Industrial Average logging its biggest daily decline in over three months, as investors continued to digest tough talk from the Federal Reserve on inflation that revived concerns about a potential U.S. recession.
The Dow Jones Industrial Average DJIA fell 764.13 points, or 2.3%, to finish at 33,202.22. The index booked its biggest daily drop since Sept. 13, when the Dow dropped more than 1,200 points.
The S&P 500 SPX dropped 99.57 points, or 2.5%, ending at 3,895.75, as the large-cap index logged for its worst day since early October.
The Nasdaq Composite COMP tumbled 360.36 points, or 3.2%, to finish at 10,810.53, booking its worst day since November 2.
Sources: Kayne Anderson Seeks $1.5 Billion for Oil-and-gas Fund
Kayne Anderson Capital Advisors has begun raising a new investment vehicle dedicated to U.S. oil and...
Kayne Anderson Capital Advisors has begun raising a new investment vehicle dedicated to U.S. oil and gas production, bucking the trend of private equity firms fleeing the sector because of its financial volatility and environmental concerns, people familiar with the matter said on Wednesday.
The alternative asset manager started marketing to investors last week Kayne Private Energy Income Fund III, aiming to secure $1.5 billion to buy and develop businesses generating steady cash flow from established production sites, the sources said.
Faced with declining well performance and a shrinking inventory of top-tier drilling locations in the...
Faced with declining well performance and a shrinking inventory of top-tier drilling locations in the Permian Basin, Texas shale operators are increasingly filing for permits to drill within city limits, with Midland seeing a nearly twofold year-over-year jump in the number of applications received in 2022. Evercore ISI analyst James West predicts premium drilling inventory will deplete in the next four to six years, while BloombergNEF estimates productivity per lateral foot from wells drilled this year is down 8% to 13% compared to last year.
