Go Finance Reporting in NEW YORK - The stock market is the United States (U.S.) again weakened due to concerns about falling oil prices could trigger a slump in the shares of the energy sector issuers. In addition, Alcoa's earnings also far is below expectations.
Energy sector shares led the drop in stock indexes, where the S & P Energy Index fell to three percent. As a result, the fall in oil prices is making market players worried about high stock price of this energy.
"The fall of energy sector led the slowdown this time because this sector is a sector which is strongly associated with global growth. So, when commodity prices move, the stock market ready to follow," said Chief Analyst Robert Van Batenburg of Louis Capital, as quoted by Reuters, in New York.
Oil prices fell for the second day after Goldman Sachs forecast called for the price of Brent crude will fall to $ 20 in coming months. International Energy Agency also said high prices could hamper oil demand.
Unrest in oil-heavy regions of the Middle East and North Africa has sparked a rise in oil prices. S & P energy index is by far the largest index which indicates the strengthening of up to 11.1 percent in 2011, well above the S & P 500's that only go up 4.5 percent since the beginning of this year.
Slump in the financial performance of Alcoa Inc. looks to make market players worried about the continuation of economic recovery. Alcoa's stock price was down six percent to USD16, 70 and pushing the Dow Jones plummeted.
In late trading on Tuesday (04/12/2011) local time, the Dow Jones Industrial fell 117.53 points, or 0.95 percent, to 12263.58. The broader Standard & Poor's 500 index dropped 10.30 points, or 0.78 percent, to 1314.16. And the Nasdaq Composite Index fell 26.72 points, or 0.96 percent to 2744.79. (GoFinance)
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