U.S. stocks closed modestly lower on Monday as a deepening slump in crude oil prices pulled down energy and mining stocks on a lighter-than-usual day of trading.
Chevron fell 1.8 percent, the most in the Dow Jones industrial average. Consol Energy sank 9 percent.
After recovering a bit last week, U.S. crude oil fell 3 percent amid reports that Iran intends to increase exports by 500,000 barrels per day once economic sanctions are removed. That would only add to excess global supplies that have helped depress oil prices.
Investors worry that falling oil prices could be a signal of further economic weakness ahead, said Paul Christopher, head global market strategist at Wells Fargo Investment Institute. “We don’t think that’s the case, but we think that’s what’s weighing on the market today.”
The Dow lost 23.90 points, or 0.14 percent, to 17,528.27. The Standard & Poor’s 500 index fell 4.49 points, or 0.2 percent, to 2,056.50. The Nasdaq composite shed 7.51 points, or 0.2 percent, to 5,040.99.
With less than a week to go in 2015, the Dow is down 1.7 percent for the year, while the S&P 500 is essentially flat with a loss of 0.1 percent. The Nasdaq is up 6.4 percent for the year.
Energy and mining companies felt the brunt of the sell-off.
Chevron fell $1.69 to $90.36, while Exxon Mobil lost 59 cents, or 0.7 percent, to $78.74. Consol Energy tumbled 78 cents to $7.87, while Chesapeake Energy slid 38 cents, or 8.5 percent, to $4.07.
Mining company Freeport-McMoRan sank 9.5 percent following news that James R. Moffett, the company’s executive chairman and co-founder, is stepping down.
Six of the 10 sectors in the S&P 500 index moved lower. Energy stocks fell the most, 1.8 percent. The sector is down 23.2 percent this year. Consumer discretionary stocks fared the best, gaining 0.3 percent. That sector is the best performer so far this year, up 9.1 percent.
Benchmark U.S. crude shed $1.29, or 3.4 percent, to close at $36.81 per barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, lost $1.27, or 3.4 percent, to close at $36.62 per barrel in London.
