Dow loses 117, tumbles further into red for year
Stocks fell Wednesday, with losses accelerating at the close, in the next-to-last day of trading in a disappointing year for investors that has seen stocks trade sideways and post flat returns.
The Dow ended down 117 points, or 0.7%, to 17,603.87 as the blue-chip index fell further from its 2014 close of 17,823.07. The Standard & Poor's 500 lost 15 points, or 0.7%, to 2063.36 and the Nasdaq composite shed 42 points, or 0.8%, to 5065.85.
After Wednesday's session, the broad S&P 500 is up a scant 0.2% for the year and the Dow is down 1.2%. Investors hope both indexes avoid their first year of negative returns since 2008. The Nasdaq has been the lone bright spot this year, up 7%.
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To finish up for the year, the Dow will have to gain 219.21 points or more Thursday.
"The major U.S. stock benchmarks (took) a breather following Tuesday's impressive surge," notes Josh Selway, an analyst at Schaeffer's Investment Research. The Dow rallied nearly 200 points, or 1.1%, yesterday.
Hurting stocks Wednesday was the same thing that has plagued markets all year: falling oil prices due to oversupply. U.S.-produced crude was down more than 3.4% and below $37 a barrel in morning trading as investors confronted another rise in U.S. inventory counts, according to the Energy Information Administration.
Stock investors are "reacting to a collapse lower overnight in crude prices following bearish inventory data last night from the American Petroleum Institutue and comments from a Saudi minister that the country would no longer limit production," according to an early morning note to investors from Bespoke Investment Group.
Wednesday's downturn in energy-related shares follows a rally in these beaten-down stocks on Tuesday.
Stocks were also down in Europe. The broad Stoxx Europe 600 index was off 0.5%. The German DAX was off 1.1% and the CAC 40 in Paris was 0.5% lower.
In Asia, the Nikkei 225 in Japan closed up 0.3%. Hong Kong's Hang Seng index fell 0.5%. And the Shanghai composite in mainland China was up 0.3%.