The Dow plunged 540 points on Wednesday morning after crude oil plummeted another 7% and crashed below $27 a barrel. The S&P 500 slumped 3.5% to its lowest intraday level since October 2014. The Nasdaq is down another 3.5%.
It’s the latest blow in what’s already been the worst start to a year on record for the stock market. The Dow is now down more than 11% in 2016.
“Despite improving valuations, global equities continue to get hammered,” Bespoke Investment Group wrote in a client note. The firm said the appetite for risk remains “awful.”
Turmoil in China and the crash in crude oil prices remain the main culprits for the market mayhem. While China’s stock market dropped “only” 1% overnight, the energy market was considerably less quiet.
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