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Dow futures plunge 1,000 points, crude prices tumble on oil price war

U.S. stock futures tumbled again Sunday evening following a sharp drop in crude prices, rattling investors as Wall Street grapples with economic disruptions from the coronavirus outbreak.

Dow futures plunged 1,000 points and Standard & Poor’s 500 futures dropped 4.2%. 

The declines came as oil prices dropped 20% Sunday after Saudi Arabia cut its export oil prices over the weekend, a move that has sparked concerns over a global oil-price war, analysts say.

Saudi Arabia’s decision came after OPEC failed to strike a deal with its allies on a cut to oil production. An agreement would have contained the plunge in the price of crude caused by the virus outbreak’s disruption to world business, analysts say. 

Investors monitor oil prices to track supply and demand in energy markets and to gauge the health of the global economy. Lower crude prices tend to benefit the economy because prices at the gas pump typically fall for consumers. The sharp decline in crude, however, has raised worries among investors about the direction of the U.S. economy. 

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