Stock Markets Rebound After Dow Drops 2k Points on Oil Fears
New York, N.Y. (PPD) — The Dow Jones Industrial Average (^DJI) rallied +1,164.12 points, or 4.88% on Tuesday to 25,015.14, after the index fell 2,000 points on Monday.
The S&P 500 (^SPX) also closed up, rallying +135.67 or 4.94% to 2,882.23.
The Nasdaq Composite (^IXIC) closed up +393.58, or 4.95% 8,344.25.
On Monday, the major market indexes were not only reacting to growing coronavirus fears, but more predominantly to the “mother of all price wars” between Saudi Arabia and Russia.
Oil prices plunged to their lowest levels in nearly four years following steep wholesale price cuts announced by Saudi Aramco, the state owned oil company. It was a direct response to Russia backing away from an agreement on managed production cuts among members of OPEC (Organization of the Petroleum Exporting Countries).
Although not an OPEC member, Russia is a large producer and exporter of crude and has frequently attended OPEC meetings as a non-member, particularly when coordination is sought on production schedules.