Tough morning for stocks
U.S. stocks could swoon when the market reopens this morning after the three-day holiday weekend. Futures prices point to a 5 percent decline in the S&P 500, Bloomberg reports. The slide would be the biggest since the tech bubble popped in the spring of 2000 and would come on the heels of sharp selloffs overseas Monday.
The stock plunge is putting pressure on commodity prices: Oil dropped more than $3 a barrel to a six-week low just above $87, and the prices of corn, soybeans and wheat dropped by their daily limit. Lehman Brothers says the U.S. economy is just one shock away from a recession, and economics blogger Michael Shedlock believes the commodity boom is over. But commodities trader Alan Kluis tells Bloomberg television that the commodity selloff is “just about the flow of money” and will make for a buying opportunity in coming weeks.
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