Shares of energy companies fell sharply alongside oil futures in the wake of hawkish comments from one Federal Reserve official.
Fed Gov. Christopher Waller said the central bank may not cut rates as aggressively as in past easing cycles.
The comments drove up the relative value of the dollar as traders bet the European Central Bank would act before the Fed.
Talos Energy shares slipped after the oil explorer agreed to buy closely held rival QuarterNorth Energy for $1.29 billion.
"In the energy space, you're seeing more and more mergers and acquisitions, and there are also a variety of deal sizes," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
"There are the front-page deals, but there are also some [smaller] deals, anecdotally, living in Houston, you can't help but hear about the latest merger," said Joyce. "A billion here, and a billion there starts to add up."
Natural gas futures remained under pressure despite an Arctic freeze that spread through most of the U.S. British oil major Shell suspended all Red Sea shipments after U.S. and U.K. strikes on Yemen's Houthi rebels triggered fears of further escalation.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-16-24 1720ET
