Investing.com — U.S. stocks fell on Tuesday, weighed down by declines in energy and financial stocks ahead of a key inflation report.
As of 1:56 pm ET (16:46 pm GMT), the benchmark was down 0.2%, while the tech-heavy stocks were up 0.03% and the 30-stock index was down 270 points, or 0.7%.
Stock markets were broadly weak ahead of the release of August's Consumer Price Index data on Wednesday.
Energy stocks follow oil price decline
Energy stocks fell 3%, leading the broader market decline, weighed down by a more than 4% drop in crude oil prices amid growing concerns about oversupply amid a darkening demand outlook.
OPEC said it expects demand to rise by about 2 million barrels per day this year, down from a previous forecast of 2.1 million barrels per day in August, marking the second consecutive month that the producers' group has cut its forecast.
Weakening fundamentals, coupled with bad weather, have led many oil companies to ExxonMobil (NYSE:), Shell (LON:), Chevron (NYSE:) announced that it is taking steps to halt production and refining activities in the Gulf of Mexico due to the effects of Tropical Storm Francine.
The storm is expected to strengthen over the next few days, according to the National Hurricane Center.
Financial stocks fall as Wall Street banks grow cautious
Wall Street banks including Goldman Sachs and JPMorgan led the broader financial sector decline after giving cautious outlooks.
JPMorgan Chase & Co. (NYSE:) President Daniel Pinto said analysts' estimates for net interest income next year were too optimistic, sending the bank's shares down 7%.
Goldman Sachs Group Inc. (NYSE:) Group Chief Executive Officer David Solomon warned Monday that the bank's third-quarter trading revenue could fall 10% from the same period a year ago.
Apple shares fall following European Court ruling and iPhone 16 announcement
Apple (NASDAQ:) shares fell 0.7% after the European Court of Justice on Tuesday overturned a ruling in Apple's favor and ordered the company to pay back 13 billion euros in back taxes.
The news came a day after the Cupertino-based company on Monday unveiled the iPhone 16, which goes on sale Sept. 20 and opens for pre-orders this Friday, aimed at jump-starting sagging sales of the device.
Analysts said the new iPhones and their AI features largely meet the expectations set out in Apple's previously announced AI initiative called “Apple Intelligence.”
Oracle shares surge on guidance and Amazon (NASDAQ:) cloud deal; JetBlue shakes up board amid activist pressure
Oracle (NYSE:) shares surged in pre-market trading after the company reported better-than-expected first-quarter earnings and second-quarter outlook, driven by strong demand for its cloud business.
The company expects second-quarter earnings per share in the range of $1.42 to $1.46, well above its earnings per share estimate of $1.33.
JetBlue Airways Inc. (NASDAQ:) pared losses and traded little changed after the airline said its board chairman and former CEO, Gary Kelly, will step down next year as part of a board shakeup following pressure from activist investor Elliott Investment Management.
(Scott Kanowski contributed to this report.)
