BREAKING: U.S. stocks close 3% lower as oil price continues to collapse amid shriveling demand for energy and a global glut of crude.
A woman wearing a mask against the spread of the new coronavirus walks past an electronic stock board showing Japan's Nikkei 225 and New York Dow index at a securities firm in Tokyo Tuesday, April 21, 2020. Asian shares skidded on Tuesday after U.S. oil futures plunged below zero as storage for crude runs close to full amid a worldwide glut as demand collapses due to the pandemic.
In the U.S., the cost for a barrel of oil to be delivered in June plunged 43% to $11.57. That’s the part of the market that U.S. oil traders are focused on and trading most actively. For oil to be delivered next month, which is when storage tanks could top out, the cost of a barrel stood at $10.01. A day earlier, it fell below zero for the first time, meaning traders paid others to take the oil off their hands to get rid of the headache of finding someplace to store it.
The Dow Jones Industrial Average fell 606 points, or 2.6%, to 23,047, and the Nasdaq was down 3.2% The losses were widespread, and all 11 sectors that make up the S&P 500 were down. Rising optimism among some investors that parts of the economy could reopen as infections level off have helped stocks rally recently, and the S&P 500 is up more than 20% since hitting a low in late March. The rally got its start after the Federal Reserve and Congress promised massive amounts of aid for the economy.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stanford economist says the US needs a 'New New Deal' - Business InsiderLawmakers need to look back to FDR-era policies for a 'New New Deal' as a solution to the pandemic's economic fallout, Matthew Jackson said.
Read more »
U.S. natgas trading at premium over oil after crude price collapseThe rapid collapse of U.S. oil futures on Monday caused crude's premium over natural gas to turn into a deficit for the first time ever.
Read more »
Coronavirus economic updates: Collapse of oil prices comes amid Russian efforts to harm US energy sectorNEW: The unprecedented collapse of the crude oil market in the U.S. is one of the key strategic objectives of the Russian government, according to a Department of Homeland Security Intelligence analysis reviewed by ABC News.
Read more »
Air quality in US dramatically worse, says new 'State of the Air' reportThe air quality in the United States is dramatically declining, leaving about 150 million people -- nearly half of America's population -- breathing unhealthy, heavily polluted air.
Read more »
US Oil Fund drops 30% after changing structure again as popular ETF tries to stave off collapse$USO, a popular oil ETF, has been halted, after saying it will change its structure again to stave off a collapse.
Read more »