Traders seemed to not have much interest today as stocks spent the first half of the trading session drifting in modestly negative territory. But as the day wore on, and oil gave up some of last week’s dead cat bounce, stocks fell further into negative territory. The correlation between equities and oil is almost 100% so far this year, so stocks appear to be vulnerable until oil finds some footing.
By the close, the Dow Jones Industrial Average was down 208 points to finish the day at 15,885. The S&P 500 was down 29 points to close at 1877. Gold was up $11 to trade at $1108 per ounce, while oil was down $2.31 to trade at $29.88 per barrel WTI.
Remember, it is a big week for earnings and of course we have a Fed meeting which begins tomorrow. We’ll get the Fed statement on Wednesday, and it will be interesting to see if recent market activity has any effect on this particular statement. Will the Fed be as gung ho as they seem to have been recently to raise rates in 2016 considering the global environment we face?
Have a nice evening everyone.