NEW YORK — Falling oil prices pushed U.S. stocks down broadly on Monday, extending losses into a second week.
European stocks also fell, and the Russian ruble plunged to a record low against the dollar as the continuing collapse in the price of oil reverberated through global financial markets.
The Standard & Poor’s 500 fell 12.70 points, or 0.6 percent, to 1,989.63. All 10 industry sectors in the index dropped. The losses followed a 3.5 percent drop in the S&P 500 last week, its biggest decline since May 2012.
“People are taking profits, and it can go on for a while,” said Uri Landesman, president of Platinum Partners, an investment fund in New York. “You’re seeing a mini-correction.”
A solid report on U.S. manufacturers and some merger news helped jolt markets higher after the open, but the gains evaporated after an hour as crude prices fell. The oil slump is worrying investors because it hammers the profits of drillers and other oil companies that are big components in stock indexes. Investors also fear it may signal that the global economic slowdown is deeper than expected.
The Dow Jones industrial average fell 99.99 points, or 0.6 percent, to 17,180.84. The Nasdaq composite lost 48.44 points, or 1 percent, to 4,605.16.
The ruble sank 13 percent to 65.83 to the dollar. The Russian currency started the year at 32.85 to the dollar.
The Russian currency has lost about half of its value against the dollar since the beginning of the year.
In an effort to halt the decline and to fight inflation, the Bank of Russia raised its key interest rate to 17 percent from 10.5 percent. Higher interest rates could help draw foreign investors to the ruble, sending its value up against other currencies.
Several commentators have noted that plunging oil prices could eventually help U.S. stocks because it pushes down gas prices, freeing up money for Americans to spend at stores.
Investors may get a better sense of just how much oil is helping consumers when the Federal Reserve concludes a two-day meeting on Wednesday. Investors will be looking to see if the statement keeps two key words: “considerable time,” a reference to how long the Fed plans to keep short-term interest rates near zero. Those low rates are widely credited with helping stocks race higher.
Benchmark U.S. crude fell $1.90, or 3.3 percent, to close at $55.91 a barrel on the New York Mercantile Exchange. Oil was as high as $107 a barrel in June.
