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Interest Rates and Crude-Oil Affect Stocks

As the price of crude-oil rises along with the interest rates for long-term investments, it should not surprise anyone in the business world that the stock market is plummeting. In a world where nothing is certain and promises are made and broken by government officials, the stock market is consistently unstable. And nothing affects the stock market more then the rise in price in the two things that help businesses thrive.

U.S. stocks closed lower Thursday, after an increase in crude-oil prices and a rise in long-term interest rates. The Dow Jones Industrial Average closed down 28.02 points at 11,025.51. The NASDAQ Composite Index ended down 3.53 points at 2,311.11, while the Standard and Poor`s 500 Index dropped 2.10 points to 1,289.14.

Michael Sheldon, chief market strategist at Spencer Clarke LLC, tells CBS Marketwatch, that the markets so far have been unable to build on yesterday`s gains, and right now are being held hostage by the bond market.