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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%.
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by David Kempton on May 24, 2016 at 17:15