Stocks Plunge, Dow Falls 500 Points As Historic Oil Rout Continues

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Stocks were down 2% as the selloff in oil markets deepened.

The Dow Jones Industrial Average was down 2.1%, nearly 500 points, at Tuesday’s open, while the S&P 500 fell 1.7% and the Nasdaq Composite lost 1.1%.to their lowest level in history yesterday—falling to negative $6.75 per barrel—amid plummeting global demand.

The May contract, which expires today, was trading in negative territory again on Tuesday, at just over negative $4 per barrel—meaning that sellers are essentially paying buyers to take oil off their hands. With the energy industry facing deep losses due to the coronavirus, crude oil futures for June have also plummeted, falling nearly 30% to just under $15 per barrel.an additional relief bill for small businesses later today, reporting that top Democrats and Republicans had finally come to “an agreement on just about every issue.”

Investors have been nervously awaiting news on the government’s plan to replenish funds for the emergency loan program to small businesses; Congress was deadlocked over a deal since last week, when the $350 billion originally allocated for the Paycheck Protection Program ran out.‘The U.S. equity narrative is about the same as it was Monday afternoon,” according to Vital Knowledge founder Adam Crisafulli.

 

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