Stocks fall due to higher Oil prices

It was a free fall for all markets yesterday with Nasdaq falling by 1.73%, Dow dropping by 0.58% and S&P down by 0.33. In the commodity bazaar, Oil jumped to $101.83, Gold sliding to touch $1,763.80 per ounce, Silver dropped by 2.11% to $33.73.

The down fall of yesterday’s markets was mainly due to highest ever yields on debt across the euro zone and the concern about region’s worst hit economies which are not showing any sign of improvement. Even Germany’s debt level is now considered as cause of concern as the country yesterday offered its lowest yield on two-year notes. Italian and Greek new governments have so far failed to show that they can effectively deal with the debt crisis they are facing.

In spite of the rising drag of Europe, investors are expecting the U.S. economy to grow. A report said yesterday that home builder confidence is increasing and industrial production is beating market expectations. In the U.S. the yield on the benchmark 10 year note was down by 0.04%. The news triggered buying of stocks, but rising oil prices and euro zone crisis dragged the market from positive territory to the red.

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Leo Pierson

About Leo Pierson

Former partner in a real estate management firm, Leo, has been active in the market for the last 8 years. Ex-blogger on penny stocks, now focused on long term growth stocks, Leo provides valuable market snapshots each day as part of our editorial team.

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