Oil keeps diving and its taking Wall Street with it
1/20/16 – “Crude crumbles below $27…freaking Wall Street out.” “World markets plunge as oil drops below $28 a barrel.”
“With under three hours of trading remaining in U.S. Markets, the Dow Jones Industrial Average (DJIA) is trading 500 points down, with the West Texas Intermediate (WTI) indexing oil below $27.
The Nasdaq composite briefly traded more than 3.5 percent lower.
The S&P 500 briefly fell more than 3.5 percent to hit its lowest since February 2014, falling below its October 2014 intraday low of 1,820.
Energy fell 7 percent, raising further concerns about an industry stricken with bankruptcies, layoffs and other cutbacks..
The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, hit a high of 32, its highest since Sept. 1st 2015.
30 stocks declined for every advancer on the New York Stock Exchange, with an exchange volume of 470 million and a composite volume of 2.1 billion in late-morning trade.
WTI fell below $27 a barrel to hit its lowest level since May 2003 amid a global glut. Traders said contract expiration around the 2:30 p.m. ET settle would likely contribute to volatility in oil markets.
Overseas markets also endured a rough day of trading. Japan’s Nikkei index entered a bear market, down 20 percent from its peak in June, and European benchmarks lost between 3 and 4 percent.”
Blanchard and Company, Inc.
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