USA stocks closed sharply lower Monday, weighed by a renewed decline in oil prices, as investors awaited key inputs on economic growth.
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The S&P 500 index showed one new 52-week high and 6 new lows, while the Nasdaq recorded eight new highs and 15 new lows. The Nasdaq Composite Index shed 72.69 points, or 1.58 percent, to 4,518.49.
Eldorado Gold Corp slumped 13.3 per cent to $2.80 after it said it expects to write down the value of its assets in Greece by $1.2-$1.6 billion after suspending most operations there.
The Dow is down 1,539.81 points, or 8.8 per cent.
On Monday, oil prices broke a two-day streak of gains on more worries about the slowdown in Chinese demand and reports that Saudi Arabia plans to push forward with energy development work without cutting back production.
While some on Wall Street are saying that Wednesday’s meltdown, and subsequent gains on Thursday and Friday, might represent the “capitulation” selloff this market has been waiting on, that judgment is premature.
The NYSE Arca Natural Gas Index plummeted by 8 percent, while the Philadelphia Oil Service Index tumbled by 5.3 percent and the NYSE Arca Oil & Gas Index slumped by 4.9 percent.
Meanwhile, hopes for more stimulus from the world’s central banks have boosted stocks in recent sessions.
In addition to the Fed meeting, investors are watching corporate earnings results for a read on the strength of the US economy as the reporting season picks up pace.
Johnson Controls, which makes ventilation systems and auto batteries, sank 3.9% after it announced a deal to merge with Ireland-based Tyco International. Goldman Sachs Group Inc. was the day’s second-worst performer in the Dow, falling 3.7 percent. The company’s overall revenue for 2015 dropped 28 percent over the year.
Twitter shares were getting crushed, down 5% this morning to a new all-time low, after CEO Jack Dorsey confirmed that a number of executives are leaving the company.
Stocks fell by midday Monday as a slide in crude oil prices resumed to pressure the energy sector.
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“We have been struck by the number of clients-particularly those focused on equities or oil-asking what the Fed might do at this meeting to lend additional support to their markets”, Hanson said, adding that in his view it is unlikely that the Fed will signal fewer rate increases this year than the four implied by the December dot plot.
