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Investing.com – The Dow fell Monday, paced by a decline in energy, though the index remained on track to notch its best performance for the month of August since 1984.
The Dow Jones Industrial Average fell 0.72%, or 205 points, though it had been down 290 points at the lows of the day. The S&P 500 was flat, while the Nasdaq Composite gained 0.83%, on course for another record close.
Energy stocks led the decline as oil price struggled in the wake of data showing U.S. crude production rose 4.2% to 10.436 million barrels per day in June, renewed oversupply concerns.
Fear about supply outstripping demand come as the impact of the coronavirus has hurt travel and tourism activity.
But Goldman Sachs (NYSE:GS) lifted its forecasts on Brent crude for the second-quarter of next year to $57.50 a barrel from $52 barrel previously amid expectations that vaccines will support global growth.
Losses in the broader market were kept in check by ongoing strength in Apple (NASDAQ:AAPL) and Tesla (NASDAQ:TSLA), both of which saw their stocks splits take effect today.
Apple’s stock split drew favorable commentary from multiple analysts on Wall Street ahead of the tech giant’s iPhone 12 launch.
“With Apple’s 4:1 stock split effective this morning we are adjusting our price target to $150 and bull case to $175 accordingly. With Apple’s stock split this morning it speaks to Cook & Co. in a major position of strength with clear tailwinds heading into its iPhone 12 supercycle kicking off in early October,” Wedbush said in a note.
On the monetary policy front, Federal Reserve vice chairman Richard Clarida strengthened expectations that monetary policy will remain accommodative for a prolonged period, insisting that under the Fed’s new approach to inflation, a low unemployment rate by itself is unlikely to be a sufficient trigger for policy action.
