Dow futures plunge 1,000 points, crude prices tumble as fears of oil price war add to virus angst




 

Asian stock markets and U.S. futures tumbled again Sunday evening following a sharp drop in crude prices, rattling investors who were already grappling with economic disruptions from the coronavirus outbreak.

Dow futures plunged 1,000 points and Standard & Poor's 500 futures dropped 4.2%. Stocks in Asia plummeted, with Japan's Nikkei 225 sliding 3% while Australia's S&P/ASX 200 shed 5%.

Bond yields, meanwhile, slumped to new unprecedented lows. Global markets have endured multiple roller coaster weeks following uncertainty over how much damage the deadly virus will do to the global economy.

Investors were spooked further Sunday after oil prices dropped 20% following Saudi Arabia's decision to cut its export oil prices over the weekend, a move that has sparked concerns over a global oil price war, analysts say.

Saudi Arabia's move came after OPEC failed to strike a deal with its allies on a cut to oil production. An agreement would have contained the plunge in the price of crude caused by the virus outbreak's disruption to world business, analysts say.

Coronavirus fears spooks stocks: Here's how to keep a cool head and protect your 401(k)

Fed rate cut: How the central bank's surprise move affects mortgages, credit cards and home equity lines

Investors monitor oil prices to track supply and demand in energy markets and to gauge the health of the global economy. Lower crude prices tend to benefit the economy because prices at the gas pump typically fall for consumers. The sharp decline in crude, however, has raised worries among investors about the direction of the U.S. economy.

"The drop in oil prices bodes poorly for the stock market because it signals that global demand is falling, which could lead to an economic slowdown," says Adam Sarhan, CEO at 50 Park Investments.

Brent crude futures, the international benchmark, dropped 20% to $36.40 per barrel. U.S. oil prices slumped 20% to $33.22 per barrel.

Stocks have seen sharp swings in recent weeks as investors weigh the global economic fallout from the virus outbreak. A brief stock market rally faded last week after a surprise interest rate cut by the Federal Reserve did little to allay concerns about how much economic growth and corporate profits will be affected.

The S&P 500 index has dropped 12% from its Feb. 19 record, putting the broad index in a correction, or a drop of 10% from a recent high.

On Sunday, the number of fatalities from the virus in the U.S. climbed to 21 with 537 confirmed cases.

Investors have dumped risky assets in a flight to safe havens, driving bond yields to historic lows. The 10-year Treasury yield, which falls when investors are worried about a weaker economy, fell below 1% last week for the first time. On Sunday, the yield on the 10-year Treasury fell below 0.5%.

This article originally appeared on USA TODAY: Dow futures plunge 1,000 points, crude prices tumble on oil price war

COMMENTS

More Related News

Better Malaysia-India ties to boost crude palm oil prices - MPOB
Better Malaysia-India ties to boost crude palm oil prices - MPOB

Crude palm oil prices may rise to 2,300-2,400 ringgit ($528.37-$551.34) per tonnne in the coming months as Malaysia's relationship with top importer India improves, industry regulator the Malaysian Palm Oil Board (MPOB) said on Wednesday. The newly appointed MPOB Chairman Ahmad Jazlan Yaakub said in a statement the rally will come as a relief to industry participants and the tens of thousands of smallholders in the country. Malaysian benchmark crude palm oil prices have plunged nearly 30% since the start of the year to trade at 2,227 ringgit per tonne on Wednesday after global lockdowns to contain the coronavirus outbreak shuttered restaurants and curbed travel, reducing demand for the...

Oil slips on demand worries, Hong Kong tensions
Oil slips on demand worries, Hong Kong tensions

Oil prices fell on Wednesday on revived concerns over how quickly fuel demand will recover even as coronavirus lockdowns begin to ease in many countries, while U.S.-China tensions added to negative sentiment. U.S. West Texas Intermediate (WTI) crude futures were down 31 cents, or 0.9%, at $34.04 a barrel. The Organization of the Petroleum Exporting Countries and producers including Russia, a grouping referred to as OPEC+, are cutting their output by nearly 10 million barrels per day in May-June to buttress prices as measures to rein in the coronavirus pandemic have slashed fuel demand.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

  • 1000mg CBD oil for sale
    (2020-03-29 12:48:55Z)

    You make so many great points here that I read your article a couple of times. Your views are in accordance with my own for the most part. This is great content for your readers.

    REPLY
  • liquid cooled bitcoin miner
    (2020-04-01 08:58:47Z)

    An interesting dialogue is price comment. I feel that it is best to write more on this matter, it may not be a taboo topic however usually individuals are not enough to talk on such topics. To the next. Cheers.

    REPLY
  • 4.99 euros to dollars
    (2020-04-01 22:43:28Z)

    Hello I am so delighted I located your blog, I really located you by mistake, while I was watching on google for something else, Anyways I am here now and could just like to say thank for a tremendous post and a all round entertaining website. Please do keep up the great work.

    REPLY
  • Dental Services
    (2020-04-04 16:08:30Z)

    Wow, cool post. I’d like to write like this too – taking time and real hard work to make a great article… but I put things off too much and never seem to get started. Thanks though.

    REPLY
  • free money no deposit mobile casino
    (2020-04-08 18:15:01Z)

    Incredible articles and awesome design. Your blog entry merits the greater part of the positive input it"s been getting.

    REPLY
  • best CBD oil for sleep
    (2020-04-29 09:38:23Z)

    Wow, this is really interesting reading. I am glad I found this and got to read it. Great job on this content. I like it.

    REPLY
  • Most of the time I don’t make comments on websites, but I'd like to say that this article really forced me to do so. Really nice post!

    REPLY
  • Whole House Wiring Pittsburgh-PA
    (2020-04-30 10:18:50Z)

    Hi there, I found your blog via Google while searching for such kinda informative post and your post looks very interesting for me.

    REPLY
  • I want to say thanks for beautiful blog sharing with us. Your blog really great resource to update my knowledge.

    REPLY
  • TerrePoJeomy
    (2020-05-25 19:25:27Z)

    Therefore, you are preparing to create a Ph. D. dissertation in an experimental place of Computer Science. Unless you have written a lot of official files just before, you reside in for an unpleasant surprise: it is actually complicated! There are actually two achievable paths to results: Organizing Ahead. Couple of take this path. Minority that carry out leave behind the College so swiftly that they are actually rarely noticed. Willpower. All you actually have to do is outlive your doctoral committee. The excellent headlines is actually that they are a lot older than you, so you can easily suspect that are going to eventually run out first. The poor news is that they are actually more engaged in at this activity (it goes without saying, they hung on when faced with their doctoral committee, didn't they?).

    linked web-site

    REPLY

Top News: Economy