Unless you're a short-term trader, what happens to the stock market in a single day rarely makes a big difference. But on a day like today, when the Dow Jones Industrials
With earnings season having started, part of the drop is likely due to nervousness about how the second quarter shaped up for Corporate America. Just in the past day, semiconductor stocks AMD
But other factors are also at play here. The U.S. dollar soared to a two-year high against the euro. A court in Germany charged with determining whether the country can participate in Europe's bailout fund said that it could take up to three months to issue a ruling, raising doubt about the Continent's ability to respond to the ongoing crisis there.
Commodities weren't beneficiaries of the dour mood, either. Both oil and gold suffered substantial losses, with oil down $2 to around $84 per barrel, while gold fell $22 to $1,567 per ounce, weighing on stocks in those respective sectors. Only bonds managed to eke out gains, with the yield on the 10-year Treasury falling back down to 1.5%.
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Fool contributor Dan Caplinger doesn't own shares of the companies mentioned. You can follow him on Twitter, @DanCaplinger. The Motley Fool owns shares of Westport Innovations. Motley Fool newsletter services have recommended buying shares of Westport Innovations and Cummins. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Fool has a disclosure policy.