U.S. shares tumble; Brent crude slips below $30

Wed Jan 13, 2016 5:00pm EST
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By Lewis Krauskopf

NEW YORK (Reuters) - U.S. stocks tumbled on Wednesday to their lowest close since September and oil prices gave up an early rally on mounting worries about the global economy.

Major U.S. stock indexes finished down more than 2 percent, with the Nasdaq off more than 3 percent. The S&P 500 ended a two-day rebound, closing below 1,900 for the first time since September.

"There is a fear that the global economy and the U.S. economy as well could lapse into a recession given the fall in energy prices and greater economic weakness overseas," said Tim Ghriskey, chief investment officer of Solaris Asset Management in New York.

Benchmark Brent crude slipped below $30 a barrel, a day after U.S. oil prices breached that level.

Volatility in oil prices overshadowed better-than-feared trade data out of China that initially lifted sentiment in equities and commodities.

Benchmark 10-year U.S. Treasury note yields fell to their lowest levels since late October as investors piled into safe-haven government debt.

The deepening slide in oil and concerns about China's economy have rattled equity markets, which have failed to sustain any significant rallies in early 2016.

"You have a lack of liquidity and incredibly negative sentiment out there," said Michael Holland, chairman of investment company Holland & Co in New York.   Continued...

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, January 11, 2016.     REUTERS/Staff/Remote