It was Groundhog Day for commodity markets -- both literally and figuratively -- as oil traders relived the nightmare of yesterday's selloff.
But unlike yesterday, crude oil took stocks along for the ride, with big losses across the market on Tuesday. The S&P 500 was down 1.9%, the Dow Jones Industrial Average slid 1.8%, or 300 points, and the Nasdaq tumbled 2.2%.
Oil slid amid concerns about a supply glut and weaker demand, while hopes for a deal between Russia and the Organization of Petroleum Exporting Countries to reduce output began to fade. West Texas Intermediate crude dropped 5.4% to $29.90 a barrel. Prices slumped 6% a day earlier.
"It's the gorilla in the room," Paul Springmeyer, regional investment strategist at the Private Client Reserve at U.S. Bank, told TheStreet. "It's something we've obviously seen pressure put on for a significant period of time and so from that standpoint it's become a point of focus for people's attention."
Big Oil wasn't helping matters, with earnings from BP (BP) and Exxon Mobil (XOM) , among the world's largest oil producers, hit hard in the most recent quarter. BP reported a 91% slump in fourth-quarter earnings and its worst annual loss in 20 years, while Exxon said quarterly earnings plummeted 58% in the last three months of 2015.
The rest of the energy sector didn't fare much better. Chevron (CVX) weighed on the Dow, while PetroChina (PTR) , Royal Dutch Shell (RDS.A) , Total (TOT) and Schlumberger (SLB) fell. The Energy Select Sector SPDR ETF (XLE) slid 2.8%.