NEW YORK — Stocks swung from gains to losses and almost back again Tuesday.
The U.S. market opened the day higher, getting a boost from encouraging news on hiring and small business confidence. The market then swooned in the afternoon as oil closed lower. The pendulum then swung back late in the day as oil gained in after-hours trading and stocks ended with small losses.
From peak to trough, the Dow Jones industrial average swung 425 points.
Stocks are having a jumpy start to the year as investors grapple with the potential impact of oil’s plunge. The outlook for global growth also remains fuzzy as the U.S. recovery continues, but economies in Europe and Asia struggle.
Even though stock market volatility has picked up at the start of the year, investors should remain calm, said Janet Dougherty, a global investment specialist in Chicago at JPMorgan private bank.
“You have to remember that we’ve been through an extended period where there wasn’t a lot of volatility in the equity markets, and now we’re just getting back to normalized levels,” Dougherty said.
The Standard & Poor’s 500 index eased 5.23 points, or 0.3 percent, to 2,023.03. The Dow fell 27.16 points, or 0.15 percent, to 17,613.68. The Nasdaq composite slipped 3.21 points, or less than 0.1 percent, to 4,661.50.
Oil fell Tuesday after the energy minister for the United Arab Emirates said Tuesday there are no plans for OPEC to curb production to shore up falling crude prices.
The market also took a knock after the CEO of KB Homes said that his company was experiencing soft demand in some markets.
The stock fell $2.70, or 16.3 percent, to close at $13.87.
