Stock Markets: Another Bad Week Follows
While the Dow did bounce back on Friday and closed up 330.44 points (1.38%) at 24,190.90, the week still marked the worst week in 2 years. This came on the back of the previous week which had seen the first drop in over a year.
Friday ended with the S&P 500 up 1.49 percent to finish at 2,619.55, while the Nasdaq added 1.44 percent to close at 6,874.49. The Dow and the S&P 500 both drop 5.2 percent on the week, while the Nasdaq also shed 5.1 percent.
The Dow Jones saw two drops of more than 1,000 points and two gains of more than 300 points during this volatile week. At their lows this week, all three major indexes hit correction levels from the record highs from the previous month.
Raising bond yields and interests hike rumors seem to have continued to scare investors creating a turbulent market that forecasts to last long into 2018.
Piggy back this with a new budget that will add to deficit, causing bond yields to potentially grow even further and 2018 could very likely be a bumpy down slope.
Consumer and investor sentiment is what really drives the market. If Trump can continue to instill hope and faith in the markets supporting businesses, their is a possibility this is just a blip on the radar.
But the reality is it can go either way. The market is on very shaky ground with a 20 trillion dollar and growing deficit, rising bond yields, and speculated interest rate hikes.