NEW YORK — Another steep drop in the price of oil weighed on global markets Tuesday. Investors remained deeply concerned about the global economy after this week’s disappointing Chinese and U.S. manufacturing data.
Energy stocks fell as oil giants Exxon Mobil and Chevron reported their worst quarterly results in more than a decade. In the technology sector, Google’s parent company, Alphabet, overtook Apple as the world’s most valuable publicly traded company.
The Dow Jones industrial average lost 295.64 points, or 1.8 percent, to 16,153.54. The S&P 500 index fell 36.35 points, or 1.9 percent, to 1,903.03, and the Nasdaq composite fell 103.42 points, or 2.2 percent, to 4,516.95.
It’s a busy week on the economic data front, particularly in the U.S., where the week ends with monthly payroll figures. So far, the numbers haven’t impressed.
On Monday, the Institute for Supply Management said its gauge of factory activity pointed to a contraction, while China’s official survey found that manufacturing fell to its lowest level in more than three years.
Those reports have weighed heavily on the market and have put investors back in a selling mood after a brief reprieve last week. U.S. government bond prices rose as investors sought safety. The yield on the 10-year Treasury note fell to 1.86 percent from 1.95 percent late Monday.
“The fear trade is alive and well and experiencing a resurgence. It’s all about focusing on defensive plays right now,” said Kristina Hooper, head of U.S. investment strategies for Allianz Global Investors.
The weak manufacturing reports weighed heavily on oil prices, and the selling pressure continued Tuesday. Benchmark U.S. oil slumped $1.74, or 5.5 percent, to close at $29.88 a barrel on the New York Mercantile Exchange, a day after it plunged nearly 6 percent. Brent crude lost $1.52, or 4.4 percent, to $32.72 a barrel in London.
“Hope is extinguished for now, as the now two-day fall in crude has regained the market’s focus,” said John Briggs, head of Americas fixed income strategy at RBS.
Chevron and Exxon, once the two largest publicly traded companies in the world, are showing signs of stress because of the plunge in oil prices. Exxon reported its lowest profit since 2002 and also announced it was curtailing its stock buyback program. Chevron posted its first quarterly loss since 2002.
