Oil price crash pulls Wall Street down

Wall Street

The corona virus and its further effects on the economy are still the focus of the US stock exchange.

(Photo: AP)

Dusseldorf At the beginning of the new trading week, Wall Street suffered significant losses. The Dow Jones slipped almost two percent shortly after the start of trading to 23,873 points.

The broadly chamfered S&P 500 also fell by around two percent to 2,830 points, the Nasdaq composite index slipped to 8,559 points, making it a good one percent in the loss zone. About an hour later, the prices of the indices recovered only slightly.

Last week, Donald Trump’s exit strategy from the corona crisis and the prospect of a drug against the virus had given hope to US investors. Over the course of the week, the Dow had risen by 2.2 percent, the S&P by three and the Nasdaq 100 index by 6.1 percent.

The slide on Wall Street is due in particular to falling oil prices. Monday is the Prices for US crude oil plummeted. A barrel of West Texas Intermediate (WT) fell up to 40 percent to around $ 11 – the lowest in over 21 years. This continues the drop in oil prices. A decline of almost 85 percent has been recorded since the beginning of the year.

The fall in prices can be justified in particular by the high oil stocks in the USA. In addition, there is the situation with futures contracts for crude oil deliveries. The June contract for the US variety WTI slipped 6.5 percent to $ 27.52 and the May future, which expired on Tuesday, even fell by almost a third to $ 12.41. WTI was last that cheap 21 years ago.

In the wake of another drop in the price of crude oil, the stocks of the oil companies are also coming under pressure. For example, the papers of companies like Apache, Marathon, Hess and Schlumberger dropped by up to 8.3 percent at times, but were able to recover. The titles of the oil multinationals ExxonMobil and Chevron lost around three percent.

In the Medical technology company Co-Diagnostics those responsible are happy about the consistently high demand for corona virus tests. This creates a good mood among investors. The company’s paper rose 15.3 percent to $ 15.10 after gaining 11 percent in pre-exchange US business. The price has roughly doubled since the beginning of the month.

With agency material.

More: Read here how the German stock market developed on Monday.


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