Dow tumbles 631 points as oil selloff deepens
NEW YORK - U.S. equity markets fell for the second straight session as oil prices continued to slide. Investors were also unfazed even though the Senate prepared to extend more relief to small businesses according to an afternoon update from Senate Majority Leader Mitch McConnell.
The Dow Jones Industrial Average tumbled more than 631 points, or 2.67 percent, while the S&P 500 and Nasdaq Composite fell by 3.07 percent and 3.5 percent, respectively.
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West Texas Intermediate crude oil remained under pressure after a historic selloff pushed prices into negative territory for the May contract, which expires on Tuesday. The June contract, the most active, plunged 52 percent to $9.74 a barrel on Tuesday.
The epic selloff in oil continues to weigh on oil majors Exxon Mobil and Chevron, which were among the biggest Dow decliners.
Meanwhile, Senate Minority Leader Chuck Schumer, D-NY, said the chamber has reached a deal to extend hundreds of billions of dollars of aid to small businesses and he expects the measure to pass on Tuesday.
On the earnings front, Dow components Coca-Cola and Travelers reported their quarterly results.
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Coca-Cola Co. posted better-than-expected top- and bottom-line results but warned volumes have plunged 25 percent since the beginning of April as customers including restaurants, movie theaters and amusement parks have temporarily closed due to COVID-19.
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Insurance provider Travelers Corp. said quarterly profit fell 25 percent from a year ago to $600 million as catastrophe losses climbed.
Elsewhere, International Business Machines said revenue dipped 3.4 percent to $17.57 billion in the final quarter under CEO Ginni Rometty. The computer-solutions provider withdrew its 2020 guidance due to uncertainty caused by COVID-19.
Netflix Inc. and Chipotle Mexican Grill are both set to release their quarterly results after the closing bell.
Food producer J.M. Smucker raised its profit and sales outlook amid increased demand as consumers load up on groceries amid “stay-at-home” orders.
Beyond Meat shares surged after the company announced its products will be available at Starbucks locations in China beginning this week.
U.S. Treasurys rallied, pushing the yield on the 10-year note down to 0.571 percent.
In Europe, Germany’s DAX paced the decline, down 3.51 percent, while France’s CAC and Britain’s FTSE were weaker by 3.25 percent and 2.54 percent, respectively.
Markets were lower across Asia, with Hong Kong’s Hang Seng falling 2.20 percent, Japan’s Nikkei shedding 1.97 percent and China’s Shanghai Composite sliding 0.90 percent.
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