View the article online at http://citywire.co.uk/money/article/a877791
Overnight Markets: Wall Street slides with falling oil prices
Shares of Exxon plunged 2.2% after the oil major reported its smallest quarterly profit in more than a decade.
Wall Street declined on Tuesday after another steep fall in oil prices and a disappointing spending forecast from Exxon Mobil.
The Dow Jones industrial average closed down 296 points, or 1.8%, to 16,154, the S&P 500 lost 36 points, or 1.87%, to 1,903 and the Nasdaq Composite dropped 103 points, or 2.24%, to 4,517.
Energy stocks slid 3.3% after oil prices fell sharply as hopes faded for a deal between OPEC and Russia to cut output.
Shares of Exxon (XOM.N) plunged 2.2% after the oil major reported its smallest quarterly profit in more than a decade, forecast a 25% drop in capital spending from 2015 levels and suspended share repurchases. Earlier on Tuesday, BP Plc (BP.N) reported an annual loss of $6.5 billion, its largest ever. BP’s stocks tumbled 8%.
The Dow Jones transportation average ended 2.9% lower following news of the first US transmission of the Zika virus.
The financial sector was also hit hard. Bank of America and Goldman Sachs were down 5.2% and 4.9%, respectively. JP Morgan, one of the largest banks in the world, fell about 3%.
Bucking the day's trend, Alphabet (GOOGL.O) was up 1.3%. Quarterly profit beat estimates late Monday and the Internet major surpassed Apple (AAPL.O) as the most valuable US company.
After the bell, shares of Chipotle (CMG.N) fell 3% after it reported its first fall in quarterly sales at established restaurants since it went public.
Also, Yahoo (YHOO.O) dipped 1% in extended trading following its results.
In Asia, shares traded sharply lower on Wednesday in morning trade after Wall Street sold off as much as 2% overnight amid a plunge in oil prices.
Japan's Nikkei 225 dropped 3.66%, while the Topix fell 3.46%. Across the Korean Strait, the Kospi slumped 1.11% in morning trade.
Australia's ASX 200 traded down 1.91%, with all sectors in the red. Chinese markets opened firmly down, with the Shanghai composite lower by 1.09%. Hong Kong's Hang Seng index declined 3.32%.
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 email@example.com to your safe senders list so we don't get junked.