Stocks finished mixed on Wall Street led by a big decline in the biotech sector, and the S&P 500 closed lower after putting up its first 5-day win streak of the year on Monday. The world economy is still experiencing growth issues as the International Monetary Fund (IMF) cut its forecast for global growth. New & emerging markets were the culprits with growth expected to slow in 2015 for a fifth straight year. The IMF cut its outlook for global growth this year to 3.1% from a July forecast of 3.3%. New predictions indicate that next year the world economy will only grow 3.6%, less than the 3.8% projected in July.
IMF chief economist Maurice Obstfeld said in a statement:
“In the near term, global growth will remain moderate and uneven, with higher downside risks than were apparent at our July update.”
Oil closed near a 3-month high after a forecast from the U.S. government for lower oil supplies for 2016, and signs from Russia and Saudi Arabia that they may be willing to support higher oil prices. Prices for a barrel of crude jumped by as much as $2, settling above $50 per barrel for the first time in a month, which sent energy stocks higher.
Here are the final numbers from Tuesday, 10/6/15 on Wall Street:
Dow Jones Industrial Average: 16,790.19 (+13.76/ +0.08%)
NASDAQ: 4,748.36 (-32.90 / -0.69%)
S&P 500: 1979.92 (-7.13 / -0.36%)
