The stock market rose significantly today. Oil declined nearly $4 to about $116, a drop of 3%. Since its early July peak, crude oil futures have declined 20%, and are back to levels left in early May. The market is responding positively not only to the drop in oil prices, but also to rising U.S. productivity, which should mean a stronger dollar and a reduced inflation threat. The S&P 500 is within 4 points of its healthy floor of 1300, and the Dow and NASDAQ also rose sharply, cutting the below-floor deficit of the FOX Index from -648 to -336, a reduction of nearly ½.
Friday, August 08, 2008
FOX Index Jumps on Oil Price Drop
The stock market rose significantly today. Oil declined nearly $4 to about $116, a drop of 3%. Since its early July peak, crude oil futures have declined 20%, and are back to levels left in early May. The market is responding positively not only to the drop in oil prices, but also to rising U.S. productivity, which should mean a stronger dollar and a reduced inflation threat. The S&P 500 is within 4 points of its healthy floor of 1300, and the Dow and NASDAQ also rose sharply, cutting the below-floor deficit of the FOX Index from -648 to -336, a reduction of nearly ½.
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