Stocks Plunged amid Crude Collapse

U.S. stocks Plunged on Monday as crude prices tumbled nearly 5%. At close, the Dow Jones Industrial Average dropped 331.34 points, or 1.86%, to 17,501.65. The S&P 500 lost 37.62 points, or 1.83%, to 2,020.58. The Nasdaq Composite shed 74.24 points, or 1.57%, to 4,652.57.

Oil futures fell Monday, stretching their losing streak to a third session and hitting their lowest levels in more than five years on concerns over a surging U.S. dollar and nagging worries of growing oil supplies. Light, sweet crude for delivery in February fell $2.65, or 5%, to settle at $50.04 a barrel on the New York Mercantile Exchange.

U.S. officials monitoring the recent drop in oil prices believe the dip so far has been beneficial for the U.S. economy, White House spokesman Josh Earnest said on Monday. U.S. average gasoline prices have fallen below $2 per gallon in much of the country. That has boosted U.S. car sales and other areas in recent months.

Automakers reported strong December U.S. sales on Monday, boosted by falling gasoline prices. General Motors Co (GM) easily beat analysts’ expectations, logging a 19 percent gain to 274,483 vehicles, the best December for the No. 1 U.S. automaker in seven years. Ford Motor Co’s (F) December sales of 220,671 were up just 1.2 percent, missing expectations.