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Friday, October 21, 2016

Dow Drops 300 Points As U.S. Stocks Plunge

Dow Drops 300 Points As U.S. Stocks Plunge

New York (AFP) – The Dow plummeted more than 300 points Friday as U.S. stocks took cues from a rout in European equities following another big drop in oil prices.

At the closing bell, the Dow Jones Industrial Average stood at 17,292.84, down 303.50 points (1.72 percent).

The broad-based S&P 500 sank 32.35 (1.59 percent) to 2,002.98, while the tech-rich Nasdaq Composite Index slumped 54.57 (1.16 percent) to 4,653.60.

Losses in European markets were even deeper. Britain’s FTSE 100 index fell about 2.5 percent and equity markets in France and Germany each lost more than 2.7 percent.

U.S. oil prices fell to a fresh five-year low of $57.81 a barrel after the International Energy Agency cut its oil-demand forecast for 2015.

Michael James, managing director of Wedbush Securities, said lower oil prices benefit consumers, but traders have been unnerved by the speed of the free-fall in crude prices.

“Projects might be put on hold in the oil sector and the are questions for the companies that bring financing,” he said. “That creates uncertainty and that creates selling.”

AFP Photo / Stan Honda

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  • Stuart

    It’s Obama’s fault. Impeach!

    • jmprint

      Stuart, why do you want to act like a child? Grow up, let be adults and have a good conversation.

  • Dominick Vila

    There is no need to panic. The recent drop is caused by the decline in oil prices, and a forecast that indicates further drops that impacted the price of oil futures. The drop in the price of oil, which benefits consumers and companies that depend on fossil fuel consumption, are bound to take a toll on oil exploration, drilling, and production. The latter augurs oil scarcity in the not too distant future, which consistent with the law of supply and demand, will cause the price of oil to fluctuate upwards within the next few months. If the decline in oil prices continues for a long time, many small oil companies will go under. BTW, the drop in oil prices has nothing to do with U.S. government policies. It is influenced by the global recession, specifically, by the economic problems in China and some Western European countries, which forced those countries to reduce oil imports, and produced an oil glut.
    As for the stock market, it will bounce back as soon as the Q4 economic report is published. Instead of economic Armageddon, this is an opportunity to invest, and make a profit in a matter of a few weeks.

    • BillP

      You are correct a 1 day or even several days of drops in the market are no reason to panic. The 3 indices -Dow , S&P 500 and Nasdaq are still up for the year with the Nasdaq up over 10%.

  • halslater

    This is really good news. Anything that is bad for oil is good for everyone else. We should levy a heavy export tax on oil to preserve it for US use and keep the US price low. The proceeds of the tax should be used to accelerate the switch to EVs and solar which would create more jobs and spread the wealth from the entrenched interests to the rest of us.

  • jmprint

    It’s about time the consumer got a little break, couldn’t come at a better time.