Moody's smaller than expected downgrade of Greece's credit rating shows that markets are starting to believe the government's efforts to contain the budget deficit, Greek Finance Minister George Papaconstantinou told CNBC Tuesday.
While most oil comes from outside the U.S., it is traded almost exclusively in U.S. dollars. That means investors who are worried about the value of the dollar can easily convert their dollars to oil.
The dollar is likely to sink further against the euro and could hit the lows of July 2007 at $1.60, Roelof van den Akker, chartist at ING Wholesale Banking, told CNBC.
The recent weakness in the dollar index is likely to continue and it could soon hit an all-time low of 70.65 points, Royce Tostrams, technical analyst from Tostrams Groep, told CNBC.
The S&P 500 index is likely to continue trading higher, but investors should remain wary of the market, as it lacks distinct momentum, Chris Locke, managing director at Oystertrade.com Management, said.
Jerry Castellini, president and CIO of CastleArk Management, Brian Dolan, chief currency strategist at Forex.com and Matt Zeman, trader at LaSalle Futures Group offered their views on where investors should put their money.
Stocks tumbled on the first day of the quarter and Dave Rovelli, managing director at Canaccord Adams, and Warren Meyers, CEO of Walter J. Dowd, said this may be an opportunity for bears to seize control.
The S&P 500 could continue to push higher as investors "climb a wall of worry," said Phil Roberts from Barclays Capital.
Oil prices are coming down from August highs, while the Standard & Poor's 500 index is approaching levels where it will find it hard to move higher, Chris Locke, managing director at Oystertrade.com Management, told CNBC Wednesday.