U.S. stocks fell sharply on Tuesday, with energy shares slammed by lower oil prices and financials dropping on diminished prospects of a near-term rate hike. Bobbi Rebell reports.
Drop in oil sends Wall Street sliding
Stocks fell more than one percent on Tuesday. Oil prices falling and taking energy stocks with them. Financials fell as well as sentiment increases there will not be a rate hike at next week’s Federal Reserve meeting.
The sell-off was broad, with all ten major S&P 500 sectors in the red, and every Dow Jones industrial average component, but Apple, declining.
Ken Kamen of Mercadien Asset Management:
(SOUNDBITE) KEN KAMEN, PRESIDENT, MERCADIEN ASSET MANAGEMENT, (ENGLISH) SAYING:
“All of a sudden, we start getting all this Fed speak over the last couple of weeks, and, all of a sudden, everyone is on edge. I call it the yeah-boo game. When you were a kid. You know, I got a bottle of beer, yeah. But it’s empty, boo. I mean that is what the Fed is doing. You know, each one is coming out. So, we are seeing this market in this manic, manic period now, and, I guess, today, we are seeing the manic side go the other way.”
Freeport McMoRan tumbled on a deal to sell some Gulf of Mexico assets to Anadarko Petroleum. Some analysts called the $2 billion deal inexpensive.
Wells Fargo in the red. The bank may take additional disciplinary action of sales abuses that led to $185 million in penalties and the firing of more than 5,000 employees.
European shares extended their losing streak.