Stocks Drop, Oil Slumps, Biotech Climbs

Stocks on the S&P 500 and Dow dropped as oil goes into bear market while the biotech, healthcare and technology stocks climbed boosting the Nasdaq Composite index on Wednesday.

The S&P 500 fell 1.42 points or 0.06 percent to 2,435.61.

The Dow Jones Industrial Average fell 57.11 points, or 0.27 percent to 21,410.03.

The Nasdaq Composite gained 45.92 points or 0.74 percent to 6,233.95.

Investors Concerned on Rising Stockpiles of Oil

Oil prices weighed heavily on the S&P 500 as Brent crude oil entered a bear market, falling below $45 a barrel and West Texas oil losing $1 to trade at $42.53 as stockpiles increased with Oil diggers increasing rigs. Libya also resumed production in two of its biggest oil fields. Exxon Mobil Corp and Chevron Corp contributed to the most decline. So far there has been a fall of 14.9 percent in the energy index, with a fall of 21 percent in oil futures so far for this year.

Concerns of inflation by investors saw bank stocks decline 0.8 percent. Investors concern that interest rate margins resulting in a flattening yield curve could drive inflation. Caterpillar’s decline of 3.3 percent weighed on the Industrial stocks which fell 0.7 percent, while FedEx gained 1.6 percent.

Telecommunications sector fell 1.2 percent, with AT&T Inc. the biggest loser.

The Nasdaq was boosted by biotechnology with Celgene and Regeneron gaining over 5 percent and Biogen increasing 4.7 percent.

The Republicans are due to release their details of the Healthcare bill on Thursday, which will overhaul the Obama Care bill. Many investors see this as a positive sign which contributed to a rise in Healthcare stocks.

Gold futures gained 0.2 percent to $1,245.96 an ounce.

On US exchanges around 7.16 billion shares changed hands.

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