Russell 2000 down as econ jitters overshadow crude oil slide

Small-cap stocks stumbled Monday, pressured by concerns about the economy, spiking inflation data and jitters ahead of Tuesday’s FOMC announcement. Losses were limited by a sharp decline in crude oil prices, but it wasn’t enough to pull the Russell 2000 (NYSE:IWM) into the green. For the day, the Russell slipped 12.02, or 1.68% to 704.14.

It was an interesting day for the markets as a seller’s mentality gripped investors across nearly all major asset classes. Usually, money will flow from one area to another (like stocks into commodities) but today’s action saw commodities get hammered, even while stocks were soft, and also as credit instruments were weak.

“Mass liquidation is never good,” said Dominic Boyle, market strategist with Lind-Waldock, in an interview with SmallCapInvestor.com. “We’re seeing the biggest one-day decline in commodities since March. It’s especially troubling to see the stock market struggling in the face of steep losses in crude oil,” he said...

For access to the full article, you must be a registered member - it's FREE.

Already a member? Please log in below