Crude oil sank into a bear market, falling below $40 a barrel for the first time since April amid renewed concerns over a supply glut. Energy producers drove declines in U.S. stocks, while emerging-market equities jumped to their highest level in almost a year.
Oil settled 22 percent below its June high as Saudi Arabia cut prices to Asian customers and U.S. drillers boost rigs for a fifth week, fueling angst a global surplus will worsen. The S&P 500 Index fell from near a record as energy shares slid the most since March, while biotechnology shares advanced. Treasuries slipped, sending 10-year yields up seven basis points to 1.52 percent. Technology stocks led gains in the MSCI Emerging Markets Index as a gauge of developing-nation currencies reached its highest point since last July.