News from the financial market seems to stay relentlessly bad. SMFN’s Ryan Gaumont reports that stock prices dropped again today. The Dow Jones Industrial Average ended the day down 391 points. At one point during the day, the Dow was down 536 points. The Nasdaq closed down 127 points (2.74%), and the Standard & Poor’s 500 index fell about 41.5 points, to close down 2.16%.
The force driving the falling stock market seems to be the oil market. Oil prices fell to $29 per barrel on Friday. The already flooded oil market is facing a coming resumption of Iranian oil as sanctions against Iran are lifted. The current oil price is the lowest in twelve years. The over-production in the oil industry comes at a time when China and some other rapidly growing economies, once hungry for oil, are pulling back.
The explanation for the oil glut involves several factors. United States domestic oil production has nearly doubled over the last several years. Countries selling the U.S. needed to find other markets. Big oil suppliers must now compete for business in Asia and have been forced to drop their prices.
Investors are not expecting a bull market in the near future.
The Sequence Media Financial Network is a featured network of Sequence Media Group.