Stocks fall for 2nd day but cut earlier sharp losses
Stocks ended down Tuesday but cut early sharp losses as financial markets come under pressure for a second straight day from volatile oil prices.
The recent rout in oil prices was spurred by the decision by OPEC to leave production levels unchanged as oil stockpiles continue to rise, driving prices lower. Oil prices on the U.S. market fell 6% Monday and dropped as much as 2.7% in early trading before cutting losses and ending a few dimes above $37 a barrel.
"Amid the fallout from last week's OPEC meeting -- at which the producer's group decided against cutting output to support prices – oil complex fundamentals are teetering on the edge of further declines," according to analysis from Platts Research.
The Dow Jones industrial average ended down about 163 points, or 0.9%, after being down as much 245 points earlier.
The Standard & Poor's 500 index dropped 0.7%, while the Nasdaq composite index lost only 0.1%.
Global stocks also tumbled. Japan's Nikkei 225 index lost 1% while Hong Kong's Hang Seng index fell 1.3%. The Shanghai composite index dropped 1.9%.
Japan sidestepped recession last quarter, as revised data released Tuesday showed its economy grew at an annual 1.0% pace instead of shrinking.
European shares were also lower Tuesday, as U.K.-headquartered mining giant Anglo American announced a "radical" restructuring plan that that will lead to the loss of 85,000 jobs.
Germany's DAX index dropped 1.4% and France's CAC 40 fell 1.1%. Britain's FTSE 100 was down 1%.
Monday, stocks took a hit as oil prices tumbled nearly 6%. The Dow dropped 117 points and the S&P 500 fell 15 points.
Contributing: Associated Press
