U.S. stocks remain turbulent after global selloff
by Patrick Gillespie @CNNMoneyInvestFebruary 9, 2016: 10:34 AM ET
Volatility is still rocking U.S. stocks.
The Dow quickly dropped another 145 points on Tuesday morning, while the S&P 500 and Nasdaqeach lost 1% out of the gate.
However, the turbulent markets turned around within minutes and are now flat to slightly lower.
The volatile swings come during what's been a terrible start to 2016 for U.S. stocks. Worries about cheap oil prices and global growth have sent the S&P 500 14% lower so far this year.
Global stocks remained under pressure overnight. Stocks in Japan plummeted 5%, while European markets were down about 1%. That negative sentiment carried over into American stocks.
The Nasdaq is now down almost 18% from its most all-time high set last July. If the index sinks below 4,185.55, it will be in what's known as a bear market, signaling a 20% decline from previous highs.
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In the last two trading days -- Friday and Monday -- the Dow has shed 390 points. The selloff partially reflects investors' fears of falling oil prices. Oil prices fell below $30 a barrel again Monday and were mostly flat Tuesday morning.
Low oil prices are great for spenders at the gas pump, but they're spreading fear about energy companies potentially going bankrupt. There's also concern about the oil trouble spilling over into the financial sector, which has loaned lots of money to energy companies.
"There's concern that it's starting to spread to other parts of the economy," Doug Cote, chief market strategist at Voya Financial. "I am concerned about European banks."