Skip to main content

Exxon, BP Drop as Oil Slides; Stocks Hurt By Fed Hike Fears

Stocks plummeted on stronger economic data which exacerbated fears the Federal Reserve will hike interest rates sooner than expected.

Stocks plummeted on stronger economic data which exacerbated fears the Federal Reserve will hike interest rates sooner than expected. Consensus is for a September hike. The increasing possibility of a hike pushed investors into safe-haven assets including the U.S. dollar. The greenback surged to an 8-year high against the Yen and a one-month high against a basket of other international currencies. A stronger dollar was hurting commodity prices, pushing West Texas Intermediate down around 2%. Major oilers Exxon (XOM), Chevron (CVX), BP (BP) and Royal Dutch Shell (RDS.A) were lower as a result. New home sales in the U.S. rose more than expected, increasing 6.8% to an adjusted annual rate of 517,000.