Stock market live updates: Stocks rallying off lows, Amazon leads comeback, oil dives 40%

8:40 am: Energy stocks down big following oil’s collapse

Shares of oil producers and services companies are dropping in premarket trading on Monday after oil prices tumbled to their lowest level in more than 21 years. The May contract of U.S. West Texas Intermediate (WTI) futures fell to $11.04 a barrel on Monday, down almost 40%, to register its lowest level since Dec. 22, 1998. Devon Energy and Noble Energy both fell more than 8%, while Occidental Petroleum tanked 10%. Halliburton dropped more than 7% after the oilfield services company warned of a big drop in activity due to oversupply and a massive drop in oil demand. – Li

8:12 am: Senate nears $370 billion deal for coronavirus small business loan programs

Senate Democrats and Republicans are nearing a deal that could inject roughly $370 billion into loan programs for small businesses, a person familiar with the negotiations told CNBC. The talks come after the $349 billion Paycheck Protection Program, which offers forgivable loans to small businesses, ran out of money on Thursday. Democrats rejected a proposal to refill the fund two weeks ago. They instead argued for changes, including adding more money to support federal testing, hospitals and local governments. They’ve also pushed to ensure groups without banking relationships get access to the program and SNAP benefits. — Hirsch

7:59 am: Shake Shack returns small business loan

The burger chain’s CEO said Monday that Shack Shack is returning the $10 million small business loan it received from the government. The restaurant chain was able to raise about $150 million in an equity offering last week. The SBA loan program was a part of the federal government’s $2.2 trillion rescue package to help small and medium sized businesses and their employees during the coronavirus shutdown. Shares of Shake Shack ticked about 1.2% lower in premarket trading on Monday. — Fitzgerald 

7:50 am: Oil drops to more than 20 year low as pandemic ravages demand

Oil prices dropped to their lowest level in more than 20 years on Monday as the coronavirus continues to eat away at demand, and as traders fear that with tanks filling up rapidly, there will soon be nowhere to store crude. The price of the nearest futures contract for West Texas Intermediate, which expires Tuesday, plunged 26% to $13.39 per barrel. The contract for June delivery, which expires on May 19,  fell more than 8% to $22.91 per barrel, while the July contract was roughly 5% lower at $28. Brent crude, the international benchmark, traded 3.38% lower at $27.12 per barrel.

The front part of the futures ‘curve,’ or the contract that expires tomorrow, was hit the hardest since it applies to fuel that’s set to be delivered while most of the country remains on lockdown due to the pandemic. There’s little demand for gasoline from refineries, and storage tanks in the U.S. are nearing their limits.

“A trading squeeze ahead of the futures contract expiry is exacerbated by the dislocation in the fundamentals this time around, contributing to these large price swings,” Rystad Energy’s head of oil markets Bjornar Tonhaugen said to CNBC in an email. – Stevens 

7:45 am: Coronavirus updates: New York past its peak, US deaths surpass 40,000

New York Gov. Andrew Cuomo said Sunday the state is “past the high point” of new cases, noting the infection rate has fallen along with coronavirus-related hospitalizations. The governor said that 507 people died of the virus in New York on Sunday, down from 540 deaths reported on Saturday, which marks the state’s lowest daily death toll in over two weeks. Still, 1,300 people were hospitalized on Saturday Cuomo said. At least 13,869 people have died in New York from the virus. 

Despite optimistic news from the virus’s epicenter, deaths from the COVID-19 in the U.S. topped 40,000 on Sunday, according to data from Johns Hopkins. The deadly virus has infected more than 759,000 Americans. Globally, the coronavirus has infected 2.4 million people and killed more than 165,000 people. – Fitzgerald

7:30 am: Dow futures fall 500 points

Stock futures pointed to the declines at the open on Monday, with Dow futures falling more than 500 points. The S&P 500 and Nasdaq were also set to drop at the opening bell. Markets are digesting the latest coronavirus news as well as a 20%  decline in U.S. oil prices. Earnings season continues on Monday as investors await data on how badly the COVID-19 outbreak has dented corporate profits. IBM reports after the bell. 

Stocks are coming off of their second week of gains in more than two months. U.S. equities got a boost last week when the White House discussed reopening the economy and Gilead Sciences appeared to have an effective coronavirus treatment. — Fitzgerald 

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