Decreasing commodity prices drive stocks down

Associated Press

NEW YORK

Since when does the stock market take its cues from the market for silver, oil and pork bellies? When it’s really the dollar that’s driving the action.

The stock market rally, which began in August, relied on stronger earnings, rising commodity prices and a weak dollar, said Andrew Wilkinson, senior market analyst at Interactive Brokers.

But prices for commodities have dropped by 10 percent this month and swung wildly over the past week.

Falling commodity prices are widely blamed for driving down stocks. The Standard & Poor’s 500 index has lost 1.9 percent so far in May.

Other indexes are down more than 1.5 percent for the month.