Biggest Two Day Drop in Months
Jitters ahead of President Obama's financial reforms and concerns over tighter lending measures to curb inflation in China are weighing on the markets again today. With another round of losses today, the major indices are now sitting at their lowest levels of the new year.
After closing at 15-month highs on Tuesday, the Dow Industrials , S&P 500 , and Nasdaq Composite are down well over 2 percent over the past two days. This gives the Dow its worst 2-day decline since August, and the S&P 500 and Nasdaq their worst 2-day losing streak since October.
The weakness isn’t limited to U.S. markets, as the European markets (U.K., France, Germany) all are sitting at 1-month lows. In Asia though, Hong Kong’s Hang Seng index broke through a support level overnight and is now at its lowest level in 3.5 months.
Meanwhile, the U.S. Dollar continues to climb to levels not seen since August, bumping up 3 percent in just the past week. This has helped put pressure on big commodity stocks which have all seen some notable declines over the past 2 weeks:
Alcoa down 16%
AK Steel down 15%
Freeport-McMoRan down 11%
Peabody Energy down 9%
BHP Billiton down 8%
Chevron down 5%
Many of these commodities stocks are now resting at 1-month lows.
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