U.S. stocks dropped as European markets tumbled and oil fell for a third day, as the rout that sent the Nasdaq Composite Index to its lowest level since October 2014 deepened.
The Standard & Poor’s 500 Index dropped 1.3 percent to 1,855.91 at 9:33 a.m. in New York, after falling 3.1 percent last week. The Nasdaq Composite Index lost 1.8 percent. West Texas Intermediate crude futures sank 1.8 percent, after losing more than 4 percent and briefly falling below $ 30 a barrel.
The S&P 500 declined last week for the first time in three, with a jobs-day tumble on Friday turning into a full-blown selloff in stocks with the highest valuations. A rout in software and Internet companies sent the Nasdaq Internet Index to its biggest slump since 2011, with Facebook Inc. posting its steepest retreat in more than a year.
The Nasdaq Composite Index tumbled 5.4 percent last week, and the S&P 500 closed 12 percent below its all-time high set in May.
Source : Bloomberg
European stocks rebounded from their biggest slump since August, before the European Central Bank’s rate decision and comments by President Mario Draghi.
The Stoxx Europe 600 Index gained 1 percent at 8:16 a.m. in London. All industry groups climbed except lenders, which were dragged down by a slide in Deutsche Bank AG.
The equity benchmark tumbled 3.2 percent yesterday to its lowest level since October 2014 as concern for global-growth prospects intensified. Worries over the impact of China’s slowdown and plunging oil prices sent the Stoxx 600 into a bear market last week, and down as much as 12 percent this year.
Draghi will hold a press conference at 2:30 p.m. in Frankfurt, 45 minutes after the rate decision is announced. The central bank’s additional measures last month left traders disappointed, sending the Stoxx 600 to its worst December since 2002.
Among stocks active on corporate news, Pearson Plc climbed 5.2 percent after saying it plans to cut about 4,000 jobs, or about 10 percent of the workforce.