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Energy Stocks Drag Down Markets to Begin Shortened Week.

Tuesday, June 20, 2023, at the start of the abbreviated trading week, U.S. equities declined, primarily due to the decline in petroleum assets. Several factors, including the performance of specific corporations and developments in the energy sector, contributed to this market decline.

One of the significant contributors to the market decline was the slide in oil futures, which had a negative impact on crude producers and oilfield services providers. Companies such as Chevron (CVX), APA (APA), Devon Energy (DVN), Halliburton (HAL), Baker Hughes (BKR), and SLB (SLB) experienced a decrease in their share prices. Additionally, solar power companies also faced a retreat, with SolarEdge Technologies (SEDG) and Enphase Energy (ENPH) leading the S&P 500 lower.

Furthermore, specific announcements and concerns related to other companies also played a role in the market downturn. Intel (INTC) witnessed a decline in share prices after announcing increased spending on a new German production site, while Boeing (BA) faced a 3% drop as rival Airbus secured a significant order from India’s IndiGo airline. Nike (NKE) experienced a decline in share prices due to concerns about its inventory backlog.

However, not all sectors faced negative impacts. Generac Holdings (GNRC) saw a rise in share prices due to reports of potential widespread blackouts in the Southern U.S., which increased demand for the company’s products. Shares of electric vehicle (EV) manufacturers Tesla (TSLA) and Rivian (RIVN) gained momentum as Rivian adopted Tesla’s charging station standard, signifying collaboration between the two companies.

In other news, the Commerce Department reported a significant jump in housing starts and building permits, leading to a rise in shares of home builders such as D.R. Horton (DHI). Additionally, DICE Therapeutics (DICE) experienced an all-time high in share prices following Eli Lilly’s (LLY) agreement to acquire the biopharma company for $2.4 billion.

The decline in energy stocks and other market factors resulted in a decrease in the Dow Jones Industrial Average (DJIA) by 0.7%, or 245 points. Companies like Intel (INTC), Nike (NKE), and Boeing (BA) contributed significantly to the index’s decline.

The market downturn on June 20, 2023, can be attributed to various factors, including the performance of energy stocks, specific company announcements, and concerns about inventory backlogs. It is important to closely monitor these developments to gain insights into the market’s performance and potential investment opportunities.

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