Stocks fell Monday after a weekend drone attack on a Saudi Arabian oil field knocked half of the kingdom’s production offline and sent oil prices surging by the most in 11 years.
All three of the major averages saw losses of at least 0.28 percent. The Dow Jones Industrial Average was the biggest decliner, losing 0.54 percent or 146 points, while snapping its eight-day winning streak.
|I:DJI||DOW JONES AVERAGES||27076.82||-142.70||-0.52%|
|I:COMP||NASDAQ COMPOSITE INDEX||8153.542864||-23.17||-0.28%|
Airline stocks, including American Airlines, Delta Air Lines and Southwest Airlines, were all lower as a result of the spike in oil prices.
|AAL||AMERICAN AIRLINES GROUP INC.||27.77||-2.18||-7.28%|
|DAL||DELTA AIR LINES INC.||59.07||-0.94||-1.57%|
|LUV||SOUTHWEST AIRLINES CO.||55.81||+0.02||+0.04%|
ExxonMobil, Chevron and other energy names gained on the news.
|XOM||EXXON MOBIL CORPORATION||73.73||+1.09||+1.50%|
Elsewhere, General Motors slumped as United Auto Workers went on strike for the first time in 12 years after the two sides were unable to come to terms on a new contract. Talks are set to continue on Monday.
|GM||GENERAL MOTORS COMPANY||37.21||-1.65||-4.25%|
Both West Texas Intermedite crude oil and Brent crude oil gained as much as14 percent, hitting highs of $62.53 and $68.65, respectively.
The attack on the Saudi Aramco facility halted production of 5.7 million barrels of crude a day, more than half of Saudi Arabia’s global daily exports. It is also more than 5 percent of the world’s daily crude oil production.
The heightened geopolitical risk sparked a flight to safety into precious metals and U.S. Treasurys.
Gold was up 0.72 percent, or $10.80, to $1,510.30 an ounce.
Buying of U.S. Treasurys pushed the 10-year yield down more than 6 basis points to 1.839 percent.
FOX Business’ Ken Martin contributed to this report.