US Stocks tumble as oil futures crash

The US equity market finished session deeply lower on Monday, 20 April 2020, as investors grappled with a oil futures crash as the coronavirus pandemic sapped demand for energy. A delay in funding the for the depleted small business rescue loan program also weighed on investors sentiments. Plunging oil prices overshadowed optimism about plans for a staggered easing of global lockdowns in the wake of the COVID-19 pandemic. At closing bell, the Dow Jones Industrial Average tumbled 592.05 points, or 2.4%, to 23,650.44. The S&P 500 lost 51.40 points, or 1.8%, to 2,823.16. The Nasdaq Composite shed 89.41 points, or 1.2%, to 8,560.73.

Crude oil futures collapsed to below zero for the first time in history as the deepening economic turmoil caused by the coronavirus crisis left traders desperate to avoid taking delivery of physical crude. West Texas Intermediate crude for May delivery finished down $55.90 on Monday, more than 306%, to settle deeply in negative territory at -$37.63 a barrel on the New York Mercantile Exchange, meaning that you have to pay to get someone to take barrels of oil off your hands amid a growing supply glut and storage shortage. The May contract expires at Tuesday's close. Any traders that are still long crude at that time must take physical delivery, while anyone short must make delivery.The June contract, which expires on May 19, fell nearly 9 percent, $22.68 a barrel.

Democratic lawmakers and Treasury Secretary Steven Mnuchin on Sunday said they were close to striking a deal to replenish a roughly $350 billion small-business recovery program, according to reports. But Senate Majority Leader Mitch McConnell threw cold water on hopes of a quick resolution to the funding stalemate, saying that lawmakers would reconvene again Tuesday to discuss the program.

Global infections of COVID-19 have exceeded 2.4 million, with more than 165,000 lives lost to the contagion that was first identified in China in December.

Plunging oil prices overshadowed optimism over signs of peak infections in parts of the world, including New York, and plans from Europe, notably Germany, to begin unwinding the recent global economic pause due to the pandemic.

All 11 stock market sectors were down on Monday, with energy, real estate and utilities the biggest laggards. Boeing, Dow Inc., American Express, Chevron and JPMorgan Chase were among the Dow's big losers.

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