Wednesday, 24 Feb 2021

Dow dives 2,000 points after oil shock

(Reuters) – Wall Street’s main indexes dropped 7% and the Dow Jones Industrials crashed 2,000 points in what would be its biggest one-day fall ever, as trading resumed on Monday following a 22% slump in oil prices.

Trading on U.S. stock exchanges was halted immediately after opening on Monday, as the S&P 500 fell 7%, triggering an automatic 15 minute cutout put in place after the 2008-9 financial crisis.

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Saudi Arabia’s move to raise oil production significantly after OPEC’s supply cut agreement with Russia collapsed sent ripples across global financial markets already panicking about the impact of the coronavirus outbreak.

Crude oil logged its worst day in almost three decades, sending oil majors Chevron Corp (CVX.N) and Exxon Mobil Corp (XOM.N) down more than 9%. The energy .SPNY index slumped 20.1%.

At 9:54 a.m. ET, the Dow Jones Industrial Average .DJI was down 1,791.85 points, or 6.93%, at 24,072.93 and the S&P 500 .SPX was down 195.93 points, or 6.59%, at 2,776.44. The Nasdaq Composite .IXIC was down 530.62 points, or 6.19%, at 8,045.00.

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