President Donald Trump earlier this week sent another warning to producer cartel OPEC (Organization of Petroleum Exporting Countries), saying he hoped the group would not cut output in a move to buoy prices. The fall in crude has also sparked worries of a global economic slowdown.
"The crude crash has gotten extreme," said Frank Cappelleri, executive director at Instinet. "Mens en gennemsnitlig omvendt flytting er forventet snart, har nedgangen haft negative effekter på både de høje udbyttemarked og kreditspreads – alt som vil være indflydelse på eventuelle rallyforsøg for aktier."
Wednesday's moves come after a volatile Session on Tuesday, with the Dow falling just over 1[ads1]00 points at the close, despite a rise earlier in the session in excess of 100 points.
Reports of renewed trade talks between the US and China failed to lift sentiment on Wednesday, with traders keeping a wary eye on volatility in the oil market.
A slew of Federal Reserve speeches are expected on Wednesday. At 6 p.m. ET, Federal Reserve Chairman Jerome Powell and Dallas Federal Reserve Bank President Robert Kaplan will talk about global economic issues in Texas.
Correction: This story has been updated to reflect that Federal Reserve Chairman Jerome Powell and the Dallas Federal Reserve Bank President Robert Kaplan will be speaking on global economic issues in Texas Wednesday at 6 pm ET.