Wall Street stocks retreat, oil tumbles on oversupply concerns

Wed Aug 24, 2016 5:38pm EDT
 
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By Hilary Russ

NEW YORK (Reuters) - Wall Street stocks retreated on Wednesday led by health care and materials stocks, while oil prices tumbled about 3.0 percent on worries about oversupply.

Healthcare shares .SPXHC shares, fell 1.6 percent, their biggest drop since June 24. Mylan (MYL.O: Quote) slumped 5.4-percent to $43.15 after U.S. presidential candidate Hillary Clinton joined a Senate committee in asking why the cost of its allergy treatment EpiPen had soared.

Shares in the materials sector .SPLRCM closed 1.2 percent lower with miners such as Newmont Mining (NEM.N: Quote) and Freeport-McMoRan (FCX.N: Quote) the worst performers on the S&P 500 index, losing more than 7.0 percent, as gold and copper prices slumped.

Gold XAU= fell to a one-month low as the U.S. dollar firmed and markets looked ahead to a speech by Federal Reserve Chair Janet Yellen on Friday that will be closely watched for further clues on U.S. interest rate policy.

The fall in mining stocks also hit Canadian stocks with the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ending down 0.94 percent.

Oil prices tumbled, with U.S. crude oil futures settling $1.33, or 2.77 percent, lower at $46.77 per barrel, after an unexpected large build up in U.S. crude oil stockpiles renewed worries about oversupply. Brent crude prices LCOc1 were 1.90 percent, or 95 cents, lower at $49.01.

WORLD WAITS FOR YELLEN ON FRIDAY   Continued...

 
Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, August 23, 2016. REUTERS/Staff/Remote