View the article online at http://citywire.co.uk/money/article/a882003
Overnight Markets: Banking stocks drag Wall Street lower
Stocks pared losses late in the session after reports OPEC was ready to cooperate on crude oil production cuts, citing the UAE energy minister.
Wall Street declined on Thursday led by banking shares amid concerns the slowing global economy will continue to pressure interest rates, while energy stocks helped pare losses late in the session.
The Dow Jones industrial average fell 255 points, or 1.6%, to 15,660, the S&P 500 lost 23 points, or 1.23%, to 1,829 and the Nasdaq Composite fell 17 points, or 0.39%, to 4,267.
Financial companies were among the biggest decliners amid growing anxiety that interest rates in the US and elsewhere would remain low and sap bank profits. Bank of America (BAC.N), down 6.8%, and JP Morgan (JPM.N), down 4.4%, were the largest drags on the S&P 500. Citigroup fell 6.5%.
Stocks pared losses late in the session after the Wall Street Journal reported OPEC was ready to cooperate on crude oil production cuts, citing the UAE energy minister. The price of oil tumbled to $26.21 a barrel, its lowest level since May 2003.
Southwestern Energy lost 5%, while NRG Energy shed 10.4%.
Boeing (BA.N) tumbled 6.8%, hit by a report that regulators are probing the planemaker's accounting. Traders bid up shares in TripAdvisor after the travel website operator's fourth-quarter profit and revenue topped estimates. The stock gained 12.4% and was the best performing stock in the S&P 500.
Cisco (CSCO.O) led tech stocks higher with a 9.6% increase after reporting a bigger-than-expected profit.
Tesla Motors climbed 4.7% after the electric car maker said its lower-priced Model 3 sedan was on schedule for a 2017 release.
In commodities, spot gold prices jumped 4.1% in their largest daily gain since September 2013.
In Asia, shares declined on Friday in morning session after global equities sank into a bear market and Japanese shares extended losses as the yen strengthened.
The MSCI Asia Pacific Index dropped 1.7% to 115 as of 11:11 a.m. in Tokyo. The Topix index slipped 4.1% as the market resumed trading following Thursday’s holiday. South Korea’s Kospi index fell 0.5%. New Zealand’s S&P/NZX 50 Index lost 1.2%. Australia’s S&P/ASX 200 Index slid 0.8%.
News sponsored by:
After Boris announced he was backing Brexit, sterling suffered its biggest slump in six years. Our Market Mavens discuss. Follow the Market Mavens LinkedIn page for weekly videos, in which our panel of industry experts share their views on financial news
The Citywire guide to investment trusts
In association with Aberdeen Asset Management
More about this:
Tools from Citywire Money
From the Forums
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add firstname.lastname@example.org to your safe senders list so we don't get junked.