NEW YORK – Bonds are rallying and stocks are slumping as investors worry that the price of oil will continue to plunge.
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Crude dropped another $2 to close just below $48 a barrel Tuesday, the lowest price since April 2009.
The collapse in oil prices has traders worried that the global economy may be slowing. They are also concerned that energy companies could slash their spending and cut jobs.
The Dow Jones industrial average lost 130 points, or 0.7 percent, to 17,371. That's on top of a 331-point drop the day before.
The Standard & Poor's 500 index fell 18 points, or 0.9 percent, to 2,002. The Nasdaq composite fell 59 points, or 1.3 percent, to 4,592.
Bond prices rose. The yield on the 10-year Treasury note fell sharply, to 1.95 percent.