U.S. Stocks Sink With Markets Around the World as Rout Deepens

U.S. stocks fell, with the Standard & Poor’s 500 Index reaching at 21-month low, following a renewed selloff across stocks worldwide as skepticism about the strength of the global economy intensified.

Equities staged a late-day rally paced by health-care and small-cap shares that briefly erased a drop of 3.7 percent in the Nasdaq Composite Index. The Dow Jones Industrial Average and S&P 500 cut their worst losses by more than half. Energy companies sank further into five-year lows, on pace for their worst monthly slump since 2008 as oil plunged. Chevron Corp. slid 3.1 percent. International Business Machines Corp. fell 4.9 percent after its earnings forecast missed projections.

The Standard & Poor’s 500 Index fell 1.2 percent to 1,859.43 at 4 p.m. in New York, closing at its lowest level since April 2014. The gauge trimmed a slide of more than 3.6 percent.

Global equities’ worst-ever start to a year deepened as oil continued its collapse and a slowdown in China weighs on sentiment. Japanese shares joined benchmark indexes in China and Europe in tumbling into a bear market today. West Texas Intermediate crude futures slumped 6.7 percent to near $ 26 a barrel.

Source : Bloomberg

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U.S. Stocks Sink With Markets Around the World

U.S. stocks tumbled, with the Dow Jones Industrial Average dropping more than 500 points, following a renewed selloff across stocks worldwide as skepticism about the strength of the global economy intensified.

Commodity shares remained at the forefront of the selloff, with energy companies sinking further into five-year lows and on pace for their worst monthly slump since 2008. Chevron Corp. slid 7.2 percent. International Business Machines Corp. fell 5.5 percent after its earnings forecast missed projections. Banks fell for a third day, with Citigroup Inc. and Bank of America Corp. down more than 5.3 percent.

The Standard & Poor’s 500 Index dropped 3.4 percent to 1,817.60 at 12:34 p.m. in New York, the most in almost five months and on track for its lowest level since April 2014. The Dow lost 521.05 points, or 3.3 percent, to 15,494.97. The Nasdaq Composite Index fell 3.4 percent and the Russell 2000 Index sank 3.5 percent.

Investors are keeping close watch on progress in the economy to gauge the potential pace of future interest-rate increases by the Federal Reserve. The central bank’s next policy meeting concludes a week from today.

Source: Bloomberg

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