It’s ugly out there.
Near 1:15 pm ET on Tuesday, stocks were near their worst levels of the day as oil was tumbling again.
The Dow was down 214 points, the S&P 500 was down 25 points to fall back below 2,000, and the Nasdaq was down 77 points.
All the major indexes were down more than 1.2%, with the Nasdaq down 1.6%.
CNBC’s Scott Wapner has said on-air on Tuesday that we are currently looking at the worst three-day drop in the S&P 500 to start a year ever.
The major averages opened higher as they looked to recover at least a portion of their heavy losses from Monday, when all the indexes fell more than 1.5% and the Dow fell 331 points.
Oil was tumbling again, falling below $US49 for the first time since April 2009 after breaking $US50 for the first time in more than five years on Monday. On Tuesday, WTI hit a new low of $US47.91.
Treasury yields were also busting lower, with the US 10-year yield falling below 2% for the first time since the “flash crash” of Oct. 15. Government bond yields in Germany were hitting all-time lows, and yields around the world won’t stop falling, as the yield on US, Japan, and the UK’s government bonds hit collective record lows.
It was a rough morning for US economic data as well, with service-sector readings from Markit Economics and ISM missing expectations for December, while November factory-orders data disappointed.
And as if there wasn’t enough negative news, Bill Gross of Janus Capital released his latest investment outlook and said that, in 2015, most asset classes will see negative returns.
Gross writes: “When the year is done, there will be minus signs in front of returns for many asset classes. The good times are over.”
Here’s the quick reversal and drop in stocks, which paused briefly before resuming.