Wall St. falls sharply on oil drop, global growth worries

June 10th, 2016  |  Source: Reuters

Global growth worries and a sharp drop in oil prices sent jitters through Wall Street, leading the three major U.S. indexes lower for the second straight day on Friday.

Despite higher demand, oil eased as traders booked profits after a three-day winning streak that started Monday and pushed prices to 2016 highs, and as the dollar moved higher.

Financial stocks came under pressure again as global issues, including uncertainty over interest rate hikes and the impending vote on Britain's membership in the European Union, sent investors scurrying to safe haven assets.

The yield on government bonds fell globally, while gold prices held near a three-week high.

"I think its the fear factor (on global issues) that is pushing stocks a little bit," said Peter Cardillo, chief market economist at First Standard Financial in New York.

"The British exit is beginning to become more of a factor now and that's due to the fact that we have crumbling yields throughout the globe."

At 9:43 a.m. ET the Dow Jones Industrial Average .DJI was down 130.36 points, or 0.72 percent, at 17,854.83.

The S&P 500 .SPX was down 18.04 points, or 0.85 percent, at 2,097.44 and the Nasdaq Composite .IXIC was down 53.38 points, or 1.08 percent, at 4,905.24.

The S&P and the Dow are, however, on track to finish the week higher, while the Nasdaq is off 0.7 percent.

All 10 S&P sectors were lower, led by the a 1.2 percent drop in the financials index .SPSY. Goldman Sachs (GS.N) fell 1.3 percent and was the biggest drag on the Dow.

Urban Outfitters (URBN.O) fell 7 percent to $26.02 after the apparel retailer's disappointing sales report.

Mattress Firm (MFRM.O) dropped 17 percent to $27.85 after posting a bigger-than-expected quarterly loss.

Declining issues outnumbered advancing ones on the NYSE by 2,399 to 381. On the Nasdaq, 2,007 issues fell and 340 advanced.

The S&P 500 index showed 23 new 52-week highs and no new lows, while the Nasdaq recorded 6 new highs and 17 new lows.

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