HasanJamil/The Associated PressAn oil rig works in the desert oil field of Sakhir, Bahrain in May. NEW YORK — A strengthening dollar and worries about an overheated market pounded stocks on today.
Shares started the day higher but turned sharply lower at midmorning as interest rates rose and a rebound in the value of the dollar stalled a rally in commodities. Early gains in prices for oil and other commodities had pushed up shares of energy and materials companies.
The sharp swings in currency and commodity markets sent the Dow Jones industrial average whipsawing in a 200-point range, surrendering an early advance for a loss of 104 points. Stocks have fallen in four of the last five days.
Oil gave up early gains to slide $1.82 to $78.68 per barrel on the New York Mercantile Exchange. That hurt the shares of major oil companies such as ConocoPhillips.
Changes in the dollar’s value against other currencies like the euro or Japanese yen frequently send commodity prices up or down. Since most commodities are priced in dollars they become more attractive to non-U.S. investors when the dollar is weak, and more expensive when the dollar is strong.
Analysts also said some investors are looking to pocket gains after a stock market run that has stretched nearly …
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