The slump in oil prices is raising red flags on Wall Street…again The Dow fell as much as 390 points Wednesday afternoon before recovering a little, primarily driven by fears about the ongoing oil price plunge and China’s currency devaluation, experts say. The S&P 500 was down 2.3% and the Nasdaq lost 3%. All three indexes are now in correction — when the market tumbles 10% or more from its peak — or worse.
As oil prices continued to hover around the lows, it “is putting pressure on equities,” said Art Hogan, chief market strategist at Wunderlich Securities. Oil prices fell under $30 a barrel Tuesday for the first time in 12 years. On Wednesday, oil hovered around $30.40. The uncertainty over oil prices caused energy stocks in the S&P 500 to decline 2% Wednesday. FULL REPORT