Stock Market Recap for 3/9-3/13
Again, volatility was the name of the game on Wall Street this week. The market primarily followed the value of the U.S. dollar and the price of oil, both of which experienced wild swings in both directions. By the end of the week, all 2015 gains on the Dow and S&P 500 had been wiped out, as both indices turned slightly negative for the year!
Monday stocks went up, recovering from the previous Friday’s 280-point drop. Concerns lingered over an interest rate hike, but investors were encouraged by the commencement of Europe’s bond-buying “quantitative easing” program. For the day, the Dow went up 138 points.
Tuesday the volatility continued as market took a sharp downturn along with oil prices. U.S. crude fell under $50 dollars per barrel on the same morning that Goldman Sachs released a statement predicting a fall to $40 dollars a barrel in the near future. Prices struggled throughout the day, falling 3.5% in total. All market gains for 2015 on the Dow and S&P were wiped out on this day, as the Dow closed down 332 points for the day.
Wednesday markets attempted to rally, but were stymied by the continued growing strength of the dollar. Remember, in the “up-is-down, left-is-right” world of Wall Street, a strong dollar is a BAD thing! The Euro slid to $1.05 against the dollar—its lowest level in 12 years! All in all, it was a quiet day for stocks as the Dow went down 27 points.
Thursday markets reacted to lower jobless claims numbers, which were down about 10% from last week. In addition, the Euro stabilized against the dollar, lowering fears in that area. It was a bounce back day for stocks as the Dow gained 259 points.
Friday, however, the dollar surged again while crude oil prices resumed their fall. The Euro fell to below $1.05 against the dollar, while crude oil closed around $45 a barrel. Consumer sentiment dropped four points for the months as well. It spelled bad news for the markets, as the Dow closed 145 points on the day.