Dow Jones drops 250 points as oil prices tumble

As the price for crude oil plummeted on Tuesday, U.S stocks traded considerably lower. In the mid- morning the Dow Jones industrial average tumbled 250 points lower. Goldman Sachs (GS), Chevron (CVX) and Exxon Mobil were more stable on the index. U.S. crude oil futures traded 5% lower on average and struggled to hold $30 per barrel during the day. Other fears about the demand and rising supply continued to weigh on the markets as a deal between OPEC and Russia on output cuts looked gloomy.

David Kelly a chief global strategist at JPMorgan Funds commented: "The oil rally, which occurred around those rumors (about an output cut), has reversed and dragged down the stock market and long-term interest rates" Meanwhile treasury yields continued to decline, with the 10-year yield (U.S.:US10Y) falling below 1.9% - its lowest since April 2015. The 2-year yield (U.S.:US2Y) was near 0.76 percent at10:30 a.m. ET

Ilya Feygin, managing director and senior strategist at WallachBeth Capital said: "I think we're settling into a range-bound area until the Friday employment report. In general the earnings season hasn't been super bad. It hasn't been the problem. The problem has been weaker oil and overall growth" However the U.S. dollar did not suffer much of a punch as it only held slightly declined against major world currencies, with the euro standing at $1.093, the Japanese yen at 120.27 yen. The S&P 500 fell 1% in the morning, as energy declined approximately 3% to lead all sectors.

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