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Category: Money

Free-fall in Commodities Puts Financial Markets on Edge

Written on May 06, 2011 by Japhet Writ

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As commodities fall and unemployment claims rises, the market stocks are being pushed to the edge.

An unexpected rise in and a free-fall in bring financial markets on edge last Thursday, dragging the stock market lower. Oil prices fell close under $100 per barrel, while Silver settled at $34.41. Metal had its largest one-day drop last Tuesday, asĀ  it reached $34. Meanwhile, Gold drops to $1,474.90 an ounce.

Just like the , energy companies also went down with Exxon, Mobil, Chevron and Schlumberger losing more than two percent. However, the drop in was a boost to companies such as Delta Air, which gained seven percent.

Last Thursday’s pullback pointed out that speculators were locking in their gains, and investors were protecting their revenues due to Friday’s job report concerns. Stock indexes also fell, following Labor Department’s statement that unemployment claims rose to 474,000 last week. That is 64,000 higher than what economists expected at 410,0000.

But despite the losses for the past two days, broader markets went up. For instance, is up to 15% – excluding dividends – since the ‘flash crash’ that pushed many investors to flee the market.

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