NEW YORK — After six months of falling oil prices, investors are starting to worry that the prolonged slump is signaling a weaker global economy.
That fear shook financial markets Monday as oil plunged again, dipping below $50 for the first time in more than five years and triggering a big sell-off, not just among energy stocks but across the entire stock market.
Stocks had already endured a weak opening because of concerns that Greece could leave the eurozone, adding to worries about the poor outlook for growth in that region. As oil slid further, the selling accelerated, pushing the Standard & Poor’s 500 index to its biggest loss in months.
QUESTIONS ABOUT RECOVERY
Since the decline began, investors have been working on the assumption that lower oil prices, caused by a glut in supply, will be a boon to the U.S. economy. On Monday, that thesis was discarded as prices plunged further and investors started to fret about the wider implications of the drop.