Crude oil continued its slide this week, pausing around $55/barrel. The decline in crude has led to many positive gains for the economy. Chiefly, the decrease in gasoline prices has been a boon to consumers. The consumer price index (CPI) fell 0.3% this month, the most since December 2008. Many traders expect guidance from the Federal Reserve, which is set to release minutes from its meeting today.
Internationally, crude’s price drop has initiated first steps toward capital controls in Russia as the Ruble fell over 20% this week. The Central Bank of Russia raised rates in a surprise announcement Tuesday. Gold prices retreated slightly, settling around $1195/oz in morning trading, nearly flat for the year.
“Lower energy prices and overall lower inflationary pressure continue to have positive effects for the US economy, and this looks to continue into 2015,” said Dave Gedeon, Vice President, Nasdaq Global Indexes.
INDEX MOVES THIS WEEK
- NASDAQ BIOTECHNOLOGY INDEX (NBI) is down 2.26% since Friday’s close. Year-to-date performance for the index is up 30.7%.
- NASDAQ GLOBAL OIL & GAS INDEX (NQG0001) is up 4.14% since Friday’s close. Year-to-date performance for the index is down 19.4%.
- NASDAQ INTERNATIONAL DIVIDEND ACHIEVERS (DAT) is up 0.63% since Friday’s close. Year-to-date performance for the index is down 6.5%.
INDEX TO WATCH
- The Nasdaq US Large Cap Index (NQUSL) is a float adjusted market capitalization-weighted index designed to track the performance of securities in Nasdaq US Benchmark Index that comprise the Large-cap segment of companies. Currently, the index contains 427 components. Additional disposable income created by the slide in crude may increase activity in this index. It has increased 6.41% year-to-date.