- Oil crash ripples through global markets as stocks plummet
- ‘The volatility overnight was just crazy,’ trader says
At 2:30 a.m., Anthony Minopoli popped out of bed to check on markets. The U.S. open was still hours away but Minopoli, who oversees $26 billion for the Knights of Columbus from New Haven, Connecticut, was too unnerved by what he saw in Asia before going to bed — a wave of selling that dragged down stocks and corporate bonds — to sleep much.
“Trying not to panic,” he’d say later.
And yet panic is exactly what overtook investors across all major U.S. markets Monday.
Triggered by Saudi Arabia’s full-blown oil price war with Russia, the S&P 500 plunged 7.6%, its biggest loss since the financial crisis. Thirty-year Treasury yields fell by the most on record, with the entire curve dipping below 1% for the first time. In credit markets, the perceived risk of investment-grade company bonds jumped the most since September 2008. Prices on dozens of energy bonds fell to distressed levels. And oil itself, which ended Monday down 25% in New York, had the worst one-day drop since 1991.