All three major stock indexes remained on pace for a second day of declines in Wednesday’s final hour of trading, with a rise in the U.S. dollar and oil prices appearing to play some role in undermining investor sentiment.
“A combination of a stronger dollar and higher oil prices might have had some influence on the turnaround in stocks” seen since equities reached record levels on Monday, said Daniel Tenengauzer, a senior foreign-exchange analyst at InTouch Capital Markets in New York.
Via phone, he said: “It started with a slightly more hawkish rate cut than expected from the Fed last week and it has since evolved into a stronger dollar and higher oil prices, on top of the technical fact that September tends to be a negative month for equities.”
