Stocks have decreased in Thursday’s early trading, following a minor pullback from the high record earlier this week.
The commodities were taking a big hit because the price of the basic material had plummeted.
The S&P 500 was down 0.2% as of 9:50 AM EST.
The Dow Jones Industrial stock Average was down 0.2% and the Nasdaq Composite fell 0.4%.
Commodities fell as everything from oil to agricultural products to metals fell sharply.
Stock prices of Copper fell close to 2%, while oil fell close to 3%.
Falling commodity prices have hindered oil companies and raw material extraction for industrial use.
The Freeport McMoRan Miner of Devon Energy and Occidental Petroleum fell by 3% or more.
The unpredictability of the commodity market is noteworthy, as the global economy recovers from the pandemic and investors focus largely on inflation.
Stock prices for basic materials such as wood, copper and gasoline have all risen steadily earlier this year, hitting highs in the last few years.
However, the declines in the past few weeks have eliminated most of the gains.
The Investors received some positive news when the Department of Labor reported that the number of Americans filing for unemployment benefits witnessed a weekly drop.
Last week, the number of claims fell from 348,000 to 29,000, the lowest in the pandemic.
The four-week average decreased by 19,000 to just under 378,000. This is also the lowest in the pandemic.
Fund managers’ stock forecast
As stocks fell by almost 1.5% this week, investors have fewer data to work on and are nearing the end of the season.
Consequently, fund managers do not expect high volatility this round.
August is also generally slower in trading, making it a popular month for investors to enjoy a vacation.
However, September is much more volatile the moment Wall Street comes back to work.
Government bond yields have also fallen.
Yields on 10-year government bonds traded at 1.24%, down from 1.27% the day before.
Robinhood stock fell over 9% as traders feared a sudden slowdown in the growth of the popular online stock app.
On the other hand, Macy’s rose 6% after making a strong prediction.