The continued fall of oil prices was the big story on the markets this week. It was Wall Street’s worst week of 2014, and the Dow’s worst week in three years, as it dropped 683 points!! Lower gasoline prices may be keeping more money in your pockets, but oil has started taking its toll on Wall Street! Let’s look at our week in review…
Monday, stocks started down as the markets finally felt serious effects from declining oil prices. Oil has been in steep decline since mid-August, but as it reached a new low of $63 dollars per barrel Monday, stocks were slammed throughout the day, particularly in the energy sector. For the day, the Dow was down 106 points.
Tuesday, markets continued downwards as part of a global rout. It wasn’t a good day for the market in the U.S., but it was MUCH worse overseas. Chinese equities saw a 5 percent decline, while political strife led to an 11 percent nosedive in Greece. With global concerns in focus, the Dow dropped 57 points for the day.
Wednesday, stocks had their worst day in almost two months, as oil continued its downturn, nearing the $60 dollar per barrel mark many had identified as a “panic” point. Low oil prices are great for consumers at the pump, but evidently not such a hit on Wall Street, as the Dow dropped 268 points for the day.
Thursday, stocks bounced back on word of strengthening retail numbers, and investors were all too happy to embrace any good news after the 431-point drop of the first three days of the week. However, late in the day oil prices fell BELOW the $60 dollar per barrel benchmark, slowing the market’s momentum. The Dow was up 63 points for the day.
Friday, oil prices continued their decline, and stocks followed suit, dropping the Dow more than 200 points before noon! Consumer reports trended positive, but it wasn’t enough to stem the tide. When all was said and done, it was the Dow’s worst day of the fall season as it fell 315 points on the day.
Dow Jones Industrial Average: 17,280.83 (-3.78% this week)
NASDAQ: 4,653.60 (-2.66% this week)
S&P 500: 2,002.33 (-3.52% this week)