Wall Street sees red after the historic collapse of the black gold

Wall Street voit rouge après l’effondrement historique de l’or noir

NEW YORK | The New York stock Exchange ended sharply down Monday in the wake of a plunge of unprecedented oil prices in new york, with contracts for delivery next month has ended in negative territory.

The index feature of Wall Street, the Dow Jones Industrial Average, was down by 2.44 %, to 23 650,44 points.

The Nasdaq, in high coloring technology, has lost 1,03 %, to 8 560,73 points, and the S&P 500, which represents 500 largest companies of Wall Street, declined 1.79 %, to 2 823,16 points.

The place in new york city, which remained on two hikes weekly consecutive, bent under the effect of the collapse of the price of a barrel of West Texas Intermediate (WTI) for may delivery, whose contract expires Tuesday.

Reference to New York, he has finished in -37,63 dollars, which means that investors are willing to pay to get rid of, for lack of storage, and in the face of weak demand from the black gold caused by the crisis of the sars coronavirus.

“Oil prices exceptionally low are a sign of the economic activity is low,” said Peter Cardillo Spartan Capital Securities.

“This is the sign that we are in a period of deflation,” adds Mr. Cardillo, recalling the series of recent indicators catastrophic for the american economy, in particular the explosion in the number of entries into unemployment.

Not surprisingly, the major oil companies are part of the values that have suffered the most in the Stock market Monday: West fell 7.6 %, Chevron by 4.1 % and Exxon Mobil 4.7 %.

But the energy sector is far from having been the only one to stand the shock, several big names of the rating of new-york as the aircraft manufacturer, Boeing (-6,8 %) or the bank JPMorgan Chase (-3,7 %) which was also very strongly folded.

In addition, investors seemed to be getting impatient in the absence of a compromise between the White House and the Congress on a second wave of loans to small and medium-sized companies in the u.s. devastated by the crisis of coronavirus.

In spite of the encouraging statements of responsible democrats and republicans over the weekend to unlock new funds for SMES, 349 billion initial already been allocated, no vote was scheduled on Monday.

On the bond market, the rate on 10-year u.s. debt have fallen, to 0,614 8 %, against 0,641 7 % to the last close.

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