U.S. stocks plunge amid global oil glut
U.S. stocks plummeted on Tuesday, with energy shares leading the losses after the International Energy Agency (IEA) projected a global glut of crude would persist into the first half of 2017.
The Dow Jones Industrial Average (I: DJI) fell 258 points, or 1.4 percent, to 18,067, with Chevron (CVX) leading the losses that included 29 of 30 components. The S&P 500 (SPX) shed 32 points, or 1.5 percent, to 2,127, with all 10 of its major industry groups falling. The Nasdaq Composite (I:COMP) lost nearly 57 points, or 1.1 percent, to 5,155.
In its report for September, the IEA said growth in global oil demand is slowing at a faster pace than initially predicted, with a near-record OPEC supply nearly offsetting steep non-OPEC declines in August.
On the New York Mercantile Exchange, West Texas Intermediate fell $1.39, or 3 percent, to $44.90 a barrel. The U.S. benchmark has traded as low as $34 a barrel this year and neared $53 a barrel in June.
Wall Street’s decline came as equities in Europe and Asia failed to bounce back, as U.S. stocks did on Monday after dovish talk by a member of the Federal Reserve, which is slated to decide whether to hike benchmark interest rates on September 21.
Stocks have see-sawed after a long period of range bound trade, with investors fretting the slow-growing global economy.