By Jon Strebler
There are two main drivers behind most market action today: Oil prices and interest rates. What was mentioned yesterday as merely a possibility has today become reality, as crude oil added onto the strength seen towards the close yesterday. Aided now by speculation that the U.S. may soon lift its 40-year ban on exporting oil, crude prices were up more than a buck a barrel near the close.
Stocks benefited from that strength, and also from a sense that stock prices may have overdone it on the downside in recent days. The big three US indices (Dow Industrials, S&P 500, and NASDAQ) were all up nearly 1 ½% with 90 minutes remaining in the trading day.
Still weighing heavily on everyone’s mind is what the Fed does – and says – tomorrow regarding an increase in short-term interest rates. Recent talk is about a possible “dovish hike,” where a modest ... Log in or subscribe to continue reading.