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Stocks post rebound after dismal 2 weeks

17 February 2018

On Monday General Motors picked up 54 cents, or 1.3 percent, to $42 and Netflix climbed $8.48, or 3.4 percent, to $257.95.

S&P 500 measures the performance of 500 widely held common stocks of large-cap USA companies.

"While we believe that the majority of the sell-off may be over for now, there is likely to be a continuation of recurring volatility as speculative positions are unwound by some investors and as still others ponder some of the worry-items that helped cause the market stumble". The index also sank into a correction area.

Technology companies, the leading sector over the past year, and banks fell the most. The Nasdaq plummeted by 5.1%, while the Dow and the S&P 500 both plunged by 5.2%.

Due to possibility of increased interest rates, the markets have been on the edge over the past week.

US stocks ended higher on Monday as the market rebounded after a heavy weekly sell-off. Hong Kong's Hang Seng index surged 2.2 percent to 30,108.75 and the Shanghai Composite Index advanced 1.8 percent to 3,212.01.

Advancing issues outnumbered declining ones on the NYSE by a 2.80-to-1 ratio; on Nasdaq, a 1.90-to-1 ratio favored advancers.

U.S. stocks moved sharply higher in early trading Friday, recouping some of the ground lost a day earlier when indexes plummeted, deepening a weeklong sell-off that knocked the market into a "correction" for the first time in two years.

The Commerce Department said wholesale inventories rose by 0.4 percent in December after climbing by a revised 0.6 percent in November. After repeatedly breaking records, investors had pushed stock prices too high, and it was time for a correction, said Jack Ablin, chief investment officer at Cresset Wealth.

Markets have been enduring a volatile spell since 2 February, when strong USA jobs and wage growth figures raised the spectre of rising inflation and accelerating interest rate hikes. The U.S. consumer-price index will be released January and may reveal the extent the tighter jobs market is creating inflation. United States crude traded at around $60.14, while Brent futures were around $63.64.

Following Wall Street's recent swings, the S&P 500 is down 0.4 percent for the year. Silver lost 20 cents, or 1.2 percent, to $16.14 an ounce. The index rose 1.5 percent Friday but still wound up with its worst weekly loss in more than two years.

The dollar rose to 108.65 yen from 108.53 yen.

Traders said that the investors' move to lock in profits, possibly some computer-programed trading, combined with concerns about interest rates have sent the equities into correction territory.

Gold rose $10.70 to $1,326.40 an ounce.

Stocks post rebound after dismal 2 weeks