American stocks finish little changed on Monday on fears about the effects of Tropical Storm Harvey. Insurance-related stock and oil drillers stumbled, while refineries made gains on the back of gasoline prices.
The Dow Jones Industrial Average index fell 5.27 points, closing around 21,800 points, as the insurance giant Travelers contributed most to these modest losses. The value of the S&P 500 moved up and down during the trading session, eventually closing down. Unlike the two largest indexes, the Nasdaq managed to record a positive trading session, rising by 0.3% to 6283.02 points.
The dollar has fallen to its lowest level for more than 30 months against the euro amid the comments of central bankers on Friday and worries about the tropical storm Harvey. On Monday, green money extended its losses from Friday when Fed Chairman Janet Yellen did not comment on the Fed’s monetary policy in any way, undermining expectations for a possible raise this year. ECB President Mario Draghi’s decision not to comment on the strong euro despite double-digit rises this year has increased the pressure on the dollar and sent the euro to the level of 1.1983 dollars per euro.
The US currency also weakened after Hurricane Harvey, which paralyzed Houston, Texas, the fourth largest city in the United States. This raised concern about the potential impact of the storm on the US economy. The dollar index, which measures the value of the dollar against a basket of six major currencies, also recorded a decline of 0.6% to 92.20 points. Katie Lynn, director of BK Asset Management, commented that, in general, what we see is persistence in the weakness of the dollar. She added that the disappointment of Yellen’s speech on Friday was dragging on to trade this week, emphasizing that Draghi’s comments continue to support the euro, and the storm’s impact on the dollar is rather weak.