It was a day of carnage on Wall Street Tuesday as oil prices crashed, stocks plummeted into the red and credit downgrades went flying.
The S&P 500 dove 1.8 percent finishing at 1,904 while the Nasdaq fell 2.2 percent on renewed fears over the stability of global growth.
The Dow Jones Industrial Average got brutalized, finishing the day down 294 points. Poor earnings reports from Exxon and Chevron helped drag down the Dow as the long-term effects of globally cheap oil shredded profit earnings in 2015. Exxon’s profits fell 50 percent from the previous year to $16.2 billion, according to Business Insider.
Oil prices crashed as well, falling back below $30 a barrel. Adding to the bad news in the energy sector, the credit rating agency Standard & Poor’s downgraded 10 of the world’s biggest oil companies including Chevron and Hess Tuesday afternoon. Oil prices have fallen roughly 70 percent over last year dealing heavy blows to the oil industry.
Commodities fell as well, dragged down 1.5 percent by oil’s plummeting price. Gold however maintained three month gains bolstered by fear of continued market volatility, reports Bloomberg.
“People are very spooked about what they can’t see, and at the moment they can’t see where global growth will come from,” Justin Urquhart Stewart, co-founder of Seven Investment Management told Bloomberg. “In a market like this, less certainty around the U.S. election cycle will add further nerves.”
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