Dow tumbles 500 points as oil's historic plunge worsens
- US stocks slid further on Tuesday as oil continued to trade at negative levels.
- West Texas Intermediate contracts expiring in May traded as low as -$16.74 a barrel on Tuesday. June contracts slipped as much as 42%, to $11.89 amid the turbulence.
- Stock futures erased some early gains after reports said North Korean leader Kim Jong Un was in critical condition following surgery.
- Watch major indexes update live here.
US stocks plummeted on Tuesday amid escalating strain on the oil market.
All three major indexes extended their downturns from Monday's session as West Texas Intermediate crude contracts expiring in May continued to trade at negative prices. The commodity market faces unprecedented pressure from a severe lack of storage capacity and weak demand amid the coronavirus shutdown.
Here's where major US indexes stood shortly after the 9:30 a.m. ET market open on Tuesday:
- S&P 500: 2,776.55, down 1.7%
- Dow Jones industrial average: 23,150.40, down 2.1% (500 points)
- Nasdaq composite: 8,468.46, down 1.1
West Texas Intermediate oil futures expiring in May traded as low as -$16.74 a barrel on Tuesday, up from Monday's close of -$37.63. That selling pressure seeped into WTI crude contracts for June, which fell as much as 42%, to $11.89 a barrel. Brent crude slid 29%, to $18.10 at intrasession lows.
Goldman Sachs sees stabilization taking weeks to arrive. Shutting down a well "is extremely expensive," Jeff Currie, the firm's global head of commodities research, warned in a Monday CNBC interview. Producers are unlikely to react quickly and bring rapid aid to the battered market, he added.
"We don't think this is the end of it. You're likely to see this continue to go on at least through the middle of May," Currie said.
Equities futures erased gains in early Tuesday trading following reports that North Korean leader Kim Jong Un was in critical condition after surgery. The news added additional uncertainty to a risk market already marred by pandemic fears, gloomy economic data, and tumbling oil prices.
IBM's first-quarter report added fuel to the stock-market fire. The company announced a 3% decline in year-over-year revenue over the period and pulled its 2020 earnings forecast amid heightened uncertainty. Shares slipped 4% in early trading.
Netflix, Chipotle, and Snap are slated to announce their quarterly results later on Tuesday.
The back-to-back market slides mark a sharp reversal from recent moves. After two straight weekly gains, Monday's session saw the Dow drop nearly 600 points amid the historic oil slump. Tuesday's decline is poised to wipe out nearly all gains made in the previous week.
Now read more markets coverage from Markets Insider and Business Insider: