Energy surges while the broader market trades flat

|By:, SA News Editor

Stocks slumped from early gains to a mixed close, despite positive headlines on an oil production deal and better than expected U.S. economic data.

The energy sector surged 5% as U.S. crude oil closed a volatile pit session up 9.3% at a one-month high $49.44/bbl following OPEC's decision to cut output by 1.2M bbl/day, along with a separate agreement for non-OPEC producers to trim production by 600K bbl/day; additionally, natural gas futures closed higher for the seventh straight session.

Financials (+1.3%) and materials (+1.1%) also posted solid gains, while consumer staples (-1.7%), tech (-1.2%) and health care (-1%) kept the market under pressure throughout the day.

A sharp uptick in Treasury yields weighed on rate-sensitive sectors, as utilities (-3.2%), telecom services (-2.1%) and real estate (-1.2%) fell sharply.

The benchmark 10-year yield added 8 bps to 2.37%, while the two-year yield rose 2 bps to 1.11%; for the month, the 10-year yield spiked 54 bps and the two-year yield jumped 26 bps.

Month-end flows led to increased investor participation, as more than 1.5B shares changed hands at the NYSE floor.