U.S. stocks plunge amid global oil glut

Trader Jonathan Greco prepares for the day's activity on the floor of the New York Stock Exchange, Monday, March 9, 2020. Trading in Wall Street futures has been halted after they fell by more than the daily limit of 5%. (AP Photo/Richard Drew)

U.S. stocks plummeted on Tuesday, with energy shares leading the losses after the International Energy Agency (IEA) projected a global glut of crude would persist into the first half of 2017.

The Dow Jones Industrial Average (I: DJI) fell 258 points, or 1.4 percent, to 18,067, with Chevron (CVX) leading the losses that included 29 of 30 components. The S&P 500 (SPX) shed 32 points, or 1.5 percent, to 2,127, with all 10 of its major industry groups falling. The Nasdaq Composite (I:COMP) lost nearly 57 points, or 1.1 percent, to 5,155.

In its report for September, the IEA said growth in global oil demand is slowing at a faster pace than initially predicted, with a near-record OPEC supply nearly offsetting steep non-OPEC declines in August. 

On the New York Mercantile Exchange, West Texas Intermediate fell $1.39, or 3 percent, to $44.90 a barrel. The U.S. benchmark has traded as low as $34 a barrel this year and neared $53 a barrel in June.

Wall Street’s decline came as equities in Europe and Asia failed to bounce back, as U.S. stocks did on Monday after dovish talk by a member of the Federal Reserve, which is slated to decide whether to hike benchmark interest rates on September 21.

Stocks have see-sawed after a long period of range bound trade, with investors fretting the slow-growing global economy.