With the supply of goods only recently recovering from constraints, the global economy did not need a disruption. Unfortunately, a ship chartered by A.P. Moller-Maersk (AMKBY) collided with a bridge in Baltimore. This will likely disrupt shipping activity, increasing costs and delays.
The weak broader market spread to cyclical stocks like Vale S.A. (VALE), Rio Tinto (RIO), and BHP Group (BHP). Conversely, energy stocks continued to demonstrate strength. Exxon (XOM) continued its uptrend. The stock bottomed in mid-February 2024 at around the $100 level. XOM stock closed at $113.79.
Metal mining firms including Freeport-McMoRan (FCX) closed near its high, thanks to strong copper prices. Cleveland-Cliffs (CLF) traded higher after it announced a contract worth $575 million. The firm won the bid for funding from the U.S. Department of Energy. The firm said the projects would allow it to substantially reduce greenhouse gas emissions.
When the real-world resource stocks rally, technology stocks flop. The Nasdaq weakened considerably toward the end of the day on Tuesday. The reversal accelerated when durable goods orders strengthened in Feb. It gained 1.4% last month.
Watch for the market’s momentum to hold. If it weakens daily toward the end of the day, be ready to close positions. Watch SPY and QQQ exchange-traded funds. They are the most popular ETFs among investors.
