March 27 (UPI) — After a strong three-day winning streak, U.S. stocks closed with losses Friday despite passage of a $2.3 trillion coronavirus relief package.
The Dow Jones Industrial Average closed down 915 points, giving back some of the 1,300-point gain it made Thursday. The S&P 500 was down about 64 points and the Nasdaq was down about 212 points.
Stocks soared on Wall Street for most of this week, fueled by multiple economic measures internationally to guard against fallout from the coronavirus crisis and Congress’ immense relief bill, which passed the House Friday and was sent to President Donald Trump for his signature.
Stocks were also influenced by sagging oil prices. The price for Brent crude was down to just below $28 per barrel, while West Texas Intermediate crude was trading around $21.50 per barrel.
Analysts say the oil market’s hesitant response to emergency measures shows traders are more concerned with an oversupplied market. The glut is due to a coronavirus-related decline in demand and a price war between producers Saudi Arabia and Russia.
Goldman Sachs said this week it expects demand to fall by 4.2 billion barrels per day, as diminishing storage capacity is leaving producers with little choice but to cut production.
Saudi Arabia has kept increasing production in an effort take market share from Russia by driving lower prices, which it believes it can more comfortably absorb. The Saudi government has said it can accept prices as low as $30 per barrel.