13/07/2024 8:09 AM

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Stocks fall after historic oil drop

Dow Jones Industrial Average falls 592 points

The Dow dropped 592.05 points, or 2.44{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, to close at 23,650.44. The S&P 500 slid 1.79{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to 2,823.16. The Nasdaq Composite closed 1.03{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} lower at 8,560.73. Stocks were under pressure as a historic plunge in oil prices raised more concerns about the global economic outlook.

Massive oil drop

The May contract for West Texas Intermediate, which expires on Tuesday, plunged more than 100{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} to settle at negative $37.63 per barrel. The negative impact on stocks from oil likely would have been worse were it not for lesser declines in oil contracts expiring during future months. Sentiment on Wall Street was also soured by the Senate not reaching a deal on more coronavirus relief. However, the Senate set up a vote as soon as Tuesday afternoon. 

Chevron and Exxon Mobil drop, Boeing falls

Chevron and Exxon Mobil tanked by 4.13{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f} and 4.72{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}, respectively to pressure the Dow. Boeing was also among the Dow’s worst-performers, dropping 6.75{3c4481f38fc19dde56b7b1f4329b509c88239ba5565146922180ec5012de023f}.

What happens next?

Coca-Cola is among the companies scheduled to report earnings on Tuesday along with Netflix and Chipotle Mexican Grill.

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