S&P 500 has its worst week in 2 years
Source: AP-Excite
By KEN SWEET
NEW YORK (AP) U.S. stocks fell for a second day Friday, adding to the massive sell-off the day before and giving the market its worst week in two years.
Investors found little reason to move money into stocks, faced with the growing geopolitical concerns in Israel and Ukraine, as well as banking problems in Europe.
For the last two years investors have generally wanted to step in to buy any major fall in the stock market, traders said, causing any sell-off to be met the following day with modest buying. Traders said that the selling Friday, on top of what happened the day before, is not a good sign.
"The follow-through from yesterday's (market drop) is very telling," said Jonathan Corpina, a trader on the New York Stock Exchange with Meridian Equity Partners. "The end of this week could not come at a better time as the weekend might provide some stability."
FULL story at link.
Trader Gregory Rowe checks a monitor in a booth on the floor of the New York Stock Exchange Friday, Aug. 1, 2014. U.S. markets steadied on Friday a day after a major sell-off. Investors focused on a relatively strong jobs report, which showed the U.S. economy created 209,000 jobs in July, the sixth straight month of job growth above 200,000. (AP Photo/Richard Drew)
Read more: http://apnews.excite.com/article/20140801/financial_markets-0cc3446585.html
cheapdate
(3,811 posts)and are positioning themselves for expected inflation growth.
DallasNE
(7,403 posts)Will it be cost push or demand pull and why.
cheapdate
(3,811 posts)Along with rising interest rates.
JackRiddler
(24,979 posts)amandabeech
(9,893 posts)It's pumping less money into the system, and that will cause interest rates to rise, along with an improving economy.
The numerous conflicts in the world are not helping, either.
On the other hand, we haven't had a real correction recently. A correction is a 10% drop. Corrections follow periods of exuberance, and we've seen plenty of stock market exuberance for the past couple of years. Perhaps the normal cycle is kicking in.
ButterflyBlood
(12,644 posts)Think about it, even in a year where the economy boomed, if you rank all 52 weeks in performance, there's going to be one at the bottom. That would be the worst week of the year, but it doesn't mean the economy was in serious trouble that week. Same if you rank 104 weeks for a two year period.
Now if the trend continues, that would be something to be concerned about. Or something like worst week since the recession ended.