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Wall Street ends on a placid note after a week’s roller coaster ride

Wall Street closed on a calm note on Friday as US stocks have come surging back, days after the global market turbulence and worries about China’s economy. U.S stocks traded lower, mostly due to a slowdown in China, and pushed S&P 500 to its lowest since October 2014.wall-street-united-states

Investors are bracing for more turbulence in the coming days. The Dow Jones Industrial Average (DJIA) fell by 0.1 percent or 11.76 points Friday, to 16,643.01. The Standard & Poor’s 500 index rose by  1.21 points or 0.1 percent to 1,998.87. NASDAQ composite added 15.62 points or 0.3 percent, to 4,828.32. Randy Fredrick, managing director of trading and derivatives for Charles Schwab in Austin said that a lot of investors are re-balancing their portfolios before going into the weekend.

“For the last few years, let’s face it, there’s been very little volatility,” said JJ Kinahan, TD Ameritrade’s Chief strategist.

By the end of the week, Dow gained 1.1 percent, cutting losses by half, the S&P rose 0.9 percent and the NASDAQ added 2.6 percent. The Federal Reserve is unlikely to raise interest rates in September, and a new report mentions that the U.S economy is growing at a steady rate than previously believed. However, worries about the Chinese economy, dropping oil prices, weak corporate earnings and uncertain interest rates remain, indicating about more turbulence in the future.

Still, the S&P 500 is almost three times higher than is post-2008 financial crisis low in March 2009. Despite the gain in stocks, the S&P 500 is down 5.5 percent in August, and Dow is down 5.9 percent. Investors believe the volatility to continue until the decision of the Feds on the increase in interest rate, but this is likely to affect the U.S economy.

On Friday, Federal Vice Chairman Stanley Fischer said Friday that before the turbulence, there was a “pretty strong case” for raising interest rates, and he added that the Feds are watching how the event unfolds.

About Anirudh Madhav

A movie buff, a bookworm, and a compulsive doodler. All posts by Anirudh

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