U.S. stocks plummet again — three straight weeks of losses

U.S. stocks plummet again — three straight weeks of losses

Authorities believe that a strong economy and a strengthening dollar are putting investors' profit margins at risk, hence the dip.

The U.S. stock market tumbled yet again Friday, marking the third straight week of losses as investors were still reeling from falling oil prices and a strengthening dollar.

The biggest declines were in utilities and basic commodities industries like steel, as well as major exporters as a volatile week came to an end ahead of a Federal Reserve policy meeting next week, according to an Associated Press report.

The meeting will be a big one, as investors will be looking for clues on just how the Fed views the economy and when — and how much — it expects to start raising interest rates.

Overall, the Dow Jones Industrial average was down 145.91 points — 0.8 percent – to 17,749.31. The Standard & Poor’s 500 was down 12.55 points — 0.6 percent — and the Nasdaq lost 21.53, or 0.4 percent.

Continuing a pattern that has been going on for many months, oil tumbled again after the International Energy Agency said that prices of the commodity were likely to go lower still as supplies were rising.

Meanwhile, the U.S. dollar continued to gain against the other currencies, with the euro dropping 1.3 percent to $1.0486, getting ever close to being less valuable than the dollar. The dollar increased 0.8 percent Friday and is up 6.4 percent in the past month against a group of other currencies.

The U.S. economy’s continued recovery was further boosted by a strong jobs report last week, and interest rates are likely to be raised fairly soon, boosting the dollar’s status. The European Central Bank, on the other hand, is trying to drive down interest rates to jump start their stagnant economy, and that means buying government bonds and reducing the value of the euro. As a result, the rapid rise of the dollar versus other currencies risks weakening the profits of investors.

Most investors think that the Federal Reserve will raise the interest rate in June, which is usually bad for high-dividend stocks as it reduces their profit margin.

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