US markets dropped even more early Wednesday after oil plunged to its 2003 low of $27 a barrel. Massive sell-offs continued through all the stocks led by the energy sector. Dow industrials plunged nearly 400 points (2.6 percent) Wednesday morning, piling on even more woe to the worst beginning of a year in stock market history. Similarly, the S&P 500 lost 51 points (2.7 percent) and Nasdaq Composite lost 3 percent before a minor rebound.
The sell-offs were triggered by record-low oil prices dropping by a further 4 percent, breaking below $27 per barrel, its lowest price since September 2003. Crude oil has become so cheap because Iran is expected to flood the world with even more oil amid a supply glut.
The Dow is now down over 10 percent since 2016 began. The S&P 500 has also lost more than 10 percent of its value over the same period, and Nasdaq Composite lost 13 percent.
Fear over plummeting oil prices, which have fallen 70 percent since 2014, has been compounded by worries over market turmoil in China, the world’s second-largest economy.
INC News, 20/01/2016 - source: ©RTNews
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