Market Extra: Why an oil price war is wreaking havoc on stocks and global financial markets right now

Market Extra: Why an oil price war is wreaking havoc on stocks and global financial markets right now

Why an oil price war is wreaking havoc on stocks and global financial markets right now. Dow down as much as 2,000-plus points as oil sees biggest 1-day drop since 1991. Oil prices plunged Monday as Saudi Arabia and Russia prepared for a global price war, triggering a worldwide equity rout that saw the Dow Jones Industrial Average drop more than 2,000 points and triggered a temporary trading halt on U.S. exchanges as shock waves traveled through financial markets already shaken by the spread of the coronavirus.. Read: OPEC price war one of the three worst things that could hit virus-wracked markets: JPMorgan. Read: Investors brace for a race to the bottom, as an all-out oil price war erupts between Saudi Arabia and Russia. Stocks remained sharply lower, with the Dow Jones Industrial Average. Pressure on yields tied to the collapse in oil prices is also bad news for financial stocks, analysts said.. The breakdown in oil prices adds to fears of a global recession.. The plunge in oil prices also takes the wind out of inflation expectations, adding to pressure on yields.. To being bad news for energy stocks, pressure on oil prices promises pain on the credit front