Crude oil is one of the most important commodities not only in terms of its use, but the overall stocks that it has in the entire world. When the price of a certain commodity drops, it might affect one person or company, but crude oil can change the definition of the market if it drops too much in a day. And this is what has happened.
Well, this is not the only thing that has become the cause of contention of the stock market officials who monitor and track every price drop or hike keenly with the help of their LED stock ticker display. However, the drop in the rate of crude prices is one thing that will definitely top the bill when it comes to triggers that can effectively change the market.
From the year 2010 – 2014, the prices of crude oil had been fairly substantial and consistent. But, since June 2016, there has been a constant flux in their prices with the rate of crude oil hitting an all time low. Crude oil’s production not only affects the US but every other country that invests in it. It is an essential commodity after all.
And a single night is all it took for the stocks of US to go down. Dow and S&P500 were the ones that closed down with the negative numbers. NASDAQ closed at 5,173 and the Dow took a dip of 31.98 points that is around a drop of 0.2%. The S&P500 went down to 2,125 and fell by 1.25 points before the market closed.
This was the lowest when it comes to the prices of crude oil. And the prices of the crude oil went down by 3%.
Russia is another player which affects this market for the crude oil. It is one of the largest supplier and when Russia decided to hike its interest rate by around 17%, it affected every other stock exchange as well including the US. Moreover, oil and gas are the top commodities which determine the stock exchange prices.
Not only this, when the LED ticker tapes of US stock exchange’s can shake like this, it becomes inevitable to note that everywhere around the world, nothing is fixed then.
Other things that kept the stock market at its toes and formed a stir include the long awaited merger between Reliance communications and Aircel. This makes Reliance the fourth largest phone company in the country which has become this big in terms of customs and revenues. This is also going to help in boosting the network of Reliance’s newest venture of Jio sim which will run on the coveted 4G network.
Another development came in the form of wholesale prices which are rising at slower paces compared to the month of August. It went up by 3.74% which is less than the rate at which it was rising in August last year. The wholesale price rose by 3.55% in the month of July. The rates of inflation have been down and inflation went from 6% to 5%.
All this and many other news related to stock exchange and other factors which could prove detrimental or great for the entire world are recorded on programmable LED display. Stock exchange and its rates are something that need to be looked closely because they effect a lot of things.