The US markets closed lower on Wednesday, weighed down by losses in the energy sector as oil prices continued to slide. But the Nasdaq Composite posted moderate gains, thanks to a surge in biotechnology shares. Crude-oil futures which entered bear-market territory – pulling back 20% from a recent peak - on Tuesday, extended losses on Wednesday, settling down at $42.39 a barrel as traders looked past a decline in crude inventories to focus on a rise in domestic production.
On the economy front, US home re-sales unexpectedly rose in May to the third highest monthly level in a decade and a chronic inventory shortage pushed the median home price to an all-time high. The National Association of Realtors said existing home sales increased 1.1 percent to a seasonally adjusted rate of 5.62 million units last month. The number of homes on the market rose 2.1 percent, but supply was down 8.4 percent from a year ago. Housing inventory has dropped for 24 straight months on a year-on-year basis. The median house price increased to an all-time high of $252,800, a 5.8 percent jump from one year ago, reflecting the dearth of properties on the market.
The Dow Jones Industrial Average lost 57.11 points or 0.27 percent to 21,410.03, S&P 500 edged lower by 1.42 points or 0.06 percent to 2,435.61, while Nasdaq added 45.92 points or 0.74 percent to 6,233.95.