LONDON: U.S. stocks closed more than 1 percent lower Wednesday, weighed by declines in oil prices and failing to extend a rally in global markets despite talk of stimulus overseas. ( Tweet This )
“Again, after a really, really strong day yesterday and a gap up in the opening, we sold off,” said Peter Coleman, head trader at Convergex. He noted pressure from weakness in oil and other commodities.
“This is the volatility that we’re going to be in for the next few weeks between the Fed and China,” he said. But “I don’t think we’ll go back and retest the lows from two weeks ago.”
Selling accelerated leading into the close. In early afternoon trade, stocks turned lower to give up an opening rally of about 1 percent.
“I think the reversal has to do with the oil prices,” said Peter Cardillo, chief market economist at Rockwell Global Capital. “Of course, the Apple event didn’t move the stock much.”
Apple closed nearly 2 percent lower, after initially spiking more than 1.5 percent amid its afternoon event, at which the company unveiled new products.
