Oil Drops Below $100 per Barrel

The stock market is higher around midday but there are pockets of weakness. While the S&P 500 is up by 0.46%. The Nasdaq Composite is down by 0.46%. Financial stocks are up the most while the energy sector is the laggard.

The Federal Reserve begins its two-day meeting tomorrow. The policy statement will be out on Wednesday afternoon. I think it’s obvious that the central bank will raise rates by 0.25%.

Perhaps the most surprising market action is the drop in the price for oil. Despite all the global troubles, there will be supplies willing to fill the void. Oil dropped below $100 per barrel earlier today. There’s talk of peace talks but the market seems skeptical.

There’s also growing concern about the Covid spike in China. The city of Shenzhen told all its businesses to suspend production or have employees work from home. That could further impact supply chain issues.

Posted by on March 14th, 2022 at 11:51 am


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