Crude Oil Prices Plunge as Shanghai Locks Down

Stocks shook off a midday slump and closed higher on Wall Street, though energy companies ended in the red as crude oil prices fell sharply. Tesla jumped 8% after saying it would seek shareholder approval to do another stock split. US crude oil slumped 7% and Brent crude, the international standard, fell 6.8% The S&P 500 rose 32.46 points, or 0.7%, to 4,575.52. The Dow Jones Industrial Average rose 94.65 points, or 0.3%, to 34,955.89. The Nasdaq rose 185.60 points, or 1.3%, to 14,354.90.

Banks and energy stocks were among the biggest weights on the market as bond yields eased lower and energy futures fell broadly. JPMorgan fell 1.7% and Exxon Mobile slid 3%. The drop in oil prices follows news that China began its most extensive coronavirus lockdown in two years to conduct mass testing and control a growing outbreak in Shanghai, its largest city and financial center. That could put a dent in global demand for energy.

Oil prices remain volatile amid the backdrop of Russia's invasion of Ukraine. The United Arab Emirates’ energy minister doubled down Monday on an oil alliance with Russia, saying that nation, with its 10 million barrels of oil a day, is an important member of the global OPEC+ energy alliance. Russian shares slumped as its stock market resumed trading of all companies after a monthlong halt following the invasion. (More stock market stories.)