Stock markets tumble as oil prices fall
NEW YORK: Another plunge in oil prices sent Wall Street stocks tumbling again on Friday, dragging down other sectors in a bearish turn ahead of next week’s landmark Federal Reserve meeting.
Even the positive reviews of the mega-merger of two venerable US industrial blue chips, Dow Chemical and DuPont, were not enough to support their shares in a determined sell-off of the market.
The Dow Jones Industrial Average fell 309.54 points (1.76 percent) to 17,265.21.The broad-based S&P 500 lost 39.86 (1.94 percent) at 2,012.37, while the tech-rich Nasdaq Composite Index dropped 111.71 (2.21 percent) to 4,933.47.
The Friday fall left all three with heavy losses for the week: The Dow was down 3.3 percent, the S&P 3.8 percent, and the Nasdaq 4.1 percent.
The unsophisticated oil price story continued to dominate, after the International Energy Agency (IEA) warned that global inventories “are set to keep building at least until late 2016.”
In reaction of London’s Brent contract dropped 4.5 percent to $37.93 a barrel and New York’s WTI fix lost 3.1 percent at $35.62 a barrel.
On the New York Stock Exchange, Dow members Chevron and Exxon Mobil corp lost 3.2 percent and 1.8 percent, respectively, and Schlumberger limited fell 2.3 percent.
Dow Chemical and DuPont both gave up much of the sharp gains that came on Wednesday when news leaked they were negotiating a merger that will create a global chemicals and materials giant worth $130 billion.