Stock prices headed lower today as commodity prices spiked rising new inflation worries.
At 2:17 p.m. EDT, all major NYSE indices traded more than 1 percent lower, and oil prices hovered around $71 a barrel boosting the stocks of Dow components such as Exxon Mobile and Chevron.
"Over the last few days, the concern has been that the bond market is worried about inflation and the rise in commodity prices is adding to that," says John Wilson, chief technical strategist at Morgan Keegan, quoted by CNNMoney.com.
"There’s a little bit of a worry that this will dampen what is hopefully the start of a recovery," he adds.
The downward trend continued despite today’s announcement of the alliance between Chrysler and Fiat that is expected to lead to the reopening of the recently closed Chrysler plants and production of fuel-efficient vehicles that meet the needs and today’s consumers.
Organizations such as the National Inflation Association have long warned about the dangers of hyperinflation and have encouraged Americans to invest in gold and other precious metals to insure their assets and wealth are protected.