On Tuesday, US stocks mainly dropped a day the benchmarks climbed to records, as the prices of oil continued to drop, increasing concerns about the slowing global growth.
At 1:17 pm ET, the Dow Jones Industrial Average was virtually even. The Nasdaq and the S&P 500 were sliding 0.4% or more.
Energy stocks took a hit with the decline in oil prices as Chevron and Exxon dropping 1% or more.
Chief market strategist at US Trust, Joe Quinlan, was quoted by USA Today as having said, “The stock market selloff reflects a bearish bet among many investors that falling oil prices reflect weaker-than-expected global growth.
Stocks are likely to be reacting to the continued decline of crude, coupled with new signs that Europe’s economic growth continues to weaken. The European Commission cut its 2015 inflation and growth outlooks for the Eurozone to 0.8% and 1.1% respectively. The downgraded outlook is a sign that weakness in the Eurozone might weight on the growth in the US.
CNBC quoted chief market strategist at Wunderlich Securities, Art Hogan as having said, “There are three things we’re struggling with today: a lower assessment of the European economy, it’s down from where they were six months ago; the sufficiently lower price in oil, and whether it’s a supply issue or is it speaking to global demand, and then we’re in a wait-and-see mode as we look at polling results, we may not even know tomorrow with certain key elections.”
Republicans were expected to increase their numbers in the Senate and House in the midterm congressional elections. Although whether the GOP garners enough sears to take control of the latter body was viewed as a close call.
Market strategist at J.P. Morgan Funds, David Lebovitz said, “What we’re seeing today is a little bit of anxiousness over the elections, which tend to spook investors.
To contact the reporter of the story: Jonathan Millet at firstname.lastname@example.org