NEW YORK (Reuters) - World equity markets and oil prices tumbled on Tuesday as worries over economic growth prospects prompted investors to retreat to safe-haven currencies and U.S. Treasuries.
U.S. stocks continued their slide as shares of consumer discretionary companies plunged after several retailers, including Target Corp and Kohl’s Corp, gave underwhelming quarterly results and earnings forecasts.
Shares of Apple Inc, which have tumbled nearly 20 percent from their record high, also extended their decline after Goldman Sachs trimmed its price target for the stock for the second time in just over a week.
“Despite what has been a pretty good earnings season, people are looking ahead to next year and are worried about a slowdown,” said Mark Kepner, equity trader at Themis Trading in Chatham, New Jersey.
“Until recently, we’ve been the standout,” Kepner said, referring to U.S. equity markets. “So the question becomes, ‘When do those come together? Does the rest of the world catch up with us, or do we look like the rest of the world?’”
Oil prices slid as much as 7 percent to mirror the stock sell-off as fears about slowing global demand and a surge in U.S. production outweighed expected supply cuts by the Organization of the Petroleum Exporting Countries (OPEC).
Oil extended its losses after U.S. President Donald Trump said the United States intends to remain a “steadfast partner” of Saudi Arabia even though “it could very well be” that Saudi Crown Prince Mohammed bin Salman had knowledge of the killing of journalist Jamal Khashoggi. Heightened tensions between the two countries had raised concerns about the possibility of supply disruptions.
U.S. crude futures
