US Stocks Dive As Oil Price Falls Back Below $30 A Barrel

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The losses wiped out the gains recorded on Thursday, when a small rebound in the oil price had sparked a recovery.

The Dow Jones Industrial Average was down 356.86 points, or 2.2%, at 16,022.19.

The S&P 500 index dropped 39.04 points, or 2%, to 1,882.80, while the Nasdaq index shed 100.82 points, or 2.2%, to 4,514.48.

Stocks across Europe were also suffering. In the UK, the FTSE 100 was down 1.9%, while in Germany the Dax index fell 2.6%.

On Wall Street, the sell-off was broad based, with all 30 stocks in the Dow Jones trading lower. But energy stocks saw big falls as the price of oil fell to fresh 12-year lows.

Brent crude fell to $29.30 a barrel at one point, before recovering slightly, while US crude touched a low of $29.28 – its lowest price since November 2003.

Oil giant Chevron was one of the biggest fallers on the Dow, dropping 2.7%.

Shares in Intel fell more than 7% after the tech giant’s fourth quarter results – released late on Thursday – failed to impress investors.

Citigroup shares were down 5% despite the bank reporting a big increase in fourth quarter profits, helped by a fall in legal fees.

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