Monday's Stock Market Open: US Equities In Historic Plunge As Oil Price Shock Roils Global Markets

Update: 2:05 p.m. EDT:

The Dow dropped more than 2,000 points in a savage market sell-off on Monday.

The Dow Jones Industrial Average tanked 2,025.82 points to 23,838.96 while the S&P 500 plummeted 222.8 points to 2,749.57 and the Nasdaq Composite Index tumbled 579.91 points to 7,995.71.

Crude oil traded at $32.36 per barrel.

Update: 1:40 p.m. EDT:

U.S. stocks continued to suffer deep losses in early afternoon trading on Monday.

The Dow Jones Industrial Average dropped 1,843.97 points to 24,020.81 while the S&P 500 plummeted 204.22 points to 2,768.15 and the Nasdaq Composite Index tumbled 518.81 points to 8,056.81.

Crude oil futures have plunged 20.5% to $32.80 per barrel.

Update: 12:05 p.m. EDT:

U.S. stocks have sustained huge losses on Monday, although equity indexes have rebounded somewhat from earlier plunge.

The Dow Jones Industrial Average dropped 1,340.07 points to 24,524.71 while the S&P 500 plummeted 149.36 points to 2,779.92 and the Nasdaq Composite Index tumbled 378.96 points to 8,196.66.

Major bank indexes have plunged 9% to 10%.

“A blend of shocks have sent the markets into a frenzy on what may only be described as ‘Black Monday,’" said Sebastien Clements, analyst at financial payments platform OFX. “A combination of a Russia vs. Saudi Arabia oil price war, a crash in equities, and escalations in coronavirus woes have created a killer cocktail to worsen last week’s hangover.”

Crude oil futures dropped more than 18.0% at $33.85 per barrel.

In Europe markets cratered as Britain’s FTSE-100 plunged 6.34%, France’s CAC-40 swooned 6.65% and Germany’s DAX tumbled 6.24%.

Update: 11:10 a.m. EDT:

U.S. stocks continue to incur heavy losses on a historically bad day on Wall Street.

The Dow Jones Industrial Average plunged 1,715.75 points to 24,149.03 while the S&P 500 dropped 192.45 points to 2,779.92 and the Nasdaq Composite Index tumbled 519.51 points to 8,056.10.

Crude oil futures dropped more than 18.5% at $33.61 per barrel.

President Donald Trump blamed Russia and Saudi Arabia “arguing over the price and flow of oil” for the stock plunge.

Update: 10:50 a.m. EDT:

U.S. stocks plunged as oil price shocks instituted by Saudi Arabia over the weekend sends global equities into a massive tailspin.

The Dow Jones Industrial Average plunged 1,537.78 points to 24,327.00 while the S&P 500 dropped 170.75 points to 2,801.62 and the Nasdaq Composite Index tumbled 475.28 points to 8,100.34.

Crude oil futures traded at $34.09 per barrel

Update: 10:25 a.m. EDT:

U.S. stocks started to rebound somewhat, but still deep in the hole.

The Dow Jones Industrial Average plunged 1,434.27 points to 24,430.51 while the S&P 500 dropped 165.98 points to 2,806.39 and the Nasdaq Composite Index tumbled 447.64 points to 8,127.98

Crude oil down to $35.24 per barrel

Update: 10:05 a.m. EDT:

U.S. stocks in deep turmoil as major indexes tumbled 6% in early morning trade.

The Dow Jones Industrial Average plunged 1,626.61 points to 24,238.17 while the S&P 500 dropped 182.4 points to 2,789.97 and the Nasdaq Composite Index tumbled 493.62 points to 8,082.

In Europe markets performing even worse as Britain’s FTSE-100 plunged 8.04%, France’s CAC-40 swooned 7.47% and Germany’s DAX tumbled 7.72%.

WTI futures plunged 19.55% at $33.21 per barrel, while Brent cratered 20.01% at $36.21.

Ten-year Treasury yield at 0.519%.

Update: 9:55 a.m. EDT:

After trading resumed on NYSE, stocks continued their downward slide.

The Dow Jones Industrial Average plunged 1,935.25 points to 23,929.53 while the S&P 500 dropped 210.74 points to 2,761.63 and the Nasdaq Composite Index tumbled 583.6 points to 7,992.02.

10-year Treasury yield at 0.498%.

Update: 9:40 a.m. EDT: Trading halted on New York Stock Exchange after S&P 500 dropped 7%.

Original story: U.S. stocks plummeted on Monday as traders were shocked by plunging oil prices, falling bond yields and an ever worsening coronavirus crisis.

The Dow Jones Industrial Average fell 1,789.37 points to 24,075.41 while the S&P 500 dropped 197.96 points to 2,774.41 and the Nasdaq Composite Index tumbled 610.35 points to 7,965.27.

Crude oil futures dropped 21.08% at $32.58 per barrel and Brent crude plunged 21.16% at $35.69. Gold futures gained 0.71%.

Oil prices have plummeted after talks by OPEC to reduce global output failed to reach an agreement. Saudi Arabia reportedly plans to increase its production. On Saturday, the kingdom unveiled huge discounts to its official selling prices for April delivery.

The yield on the 10-year Treasury note sank below 0.5% for the first time in history.

“We believe the OPEC and Russia oil price war unequivocally started this weekend when Saudi Arabia aggressively cut the relative price at which it sells its crude by the most in at least 20 years,” said Goldman Sachs analyst Damien Courvalin said in a note. “The prognosis for the oil market is even more dire than in November 2014, when such a price war last started, as it comes to a head with the significant collapse in oil demand due to the coronavirus.”

“Crude has become a bigger problem for markets than the coronavirus,” said Adam Crisafulli, founder of Vital Knowledge. “It will be virtually impossible for the [S&P 500] to sustainably bounce if Brent continues to crater.”

Chris Rupkey, MUFG Union Bank’s chief financial economist, said: “The idea that lower gasoline prices is going to put more cash in workers’ pockets and give consumer spending and the economy a boost doesn’t seem to cushion the blow for stock market investors. They want out. Big time. The sky is falling. Get out, get out while you can. Wall Street’s woes have to eventually hit Main Street’s economy hard.”

As of Sunday, the number of coronavirus infections surpassed 109,000 with at least 3,801 deaths. In the U.S. with New York, California and Oregon all declaring a state of emergency, confirmed cases reached nearly 550, including 22 deaths. Italy placed its northern industrial heartland on virtual lockdown.

“You just don’t know which way things are going to go, it makes it very hard to price anything right now,” said Sarah Hunter, chief economist for BIS Oxford Economics. “We’re seeing that in the market with the wild oscillations that are coming through.”

"Markets are completely out of luck because there is no good news coming from anywhere which can help the current sell-off," said Naeem Aslam, chief market analyst at AvaTrade. "A real panic mode is on and there is no place to hide for investors.”

Overnight in Asia, markets plunged. China’s Shanghai Composite dropped 3.01%, while Hong Kong’s Hang Seng fell 4.23%, and Japan’s Nikkei-225 tumbled 5.07%.

In Europe markets traded sharply lower as Britain’s FTSE-100 plunged 7.68%, France’s CAC-40 swooned 7.83% and Germany’s DAX tumbled 8.06%.

The euro rose 1.67% at $1.1475 while the pound sterling gained 0.55% at $1.3119.