When we look back on 2015, this could be the week that marked the turning point; the end of the bull market. All three major indices were annihilated to the tune of 5%-7% losses. The Dow and S&P 500 are now decisively negative for the year after the worst week on Wall Street since 2011!
***DOW DOWN 1,017 POINTS FOR THE WEEK
Monday U.S markets shed almost 1% in early trading. Fears over oil prices drove the early fear, as oil moved below $42 a barrel. Disappointing manufacturing data from the state of New York also played a role in the market’s early tumble. As oil prices stabilized, so did the markets. Positive housing data helped the Dow gain 67 points for the day.
Tuesday was slower than Monday. Another drop in China’s Shanghai Index dulled investors’ reactions to positive housing data, which was Tuesday’s main data Housing starts reached an eight-year high at 1.21 million in July. However, concerns over the Chinese market held back the markets, and the Dow lost 33 points.
Wednesday U.S stocks traded lower, as domestic investors had a chance to react to the minutes from the Federal Reserve’s July meeting where the central bank indicated that conditions were “approaching” the desired levels for the first interest rate hike in a decade. Further volatility in the Chinese markets, plus another 4% drop in oil led the Dow to lose 162 points.
Thursday U.S Stocks were hammered as investors continued to fret over the price of oil. Crude oil dipped below $40 per barrel early in the day—a fresh 6 ½ year low. It was the worst day of 2015 for Wall Street (until the next day) as the S&P 500 index dipped into the negative for the year. The Dow dropped 358 points.
Friday proved that this was a serious pullback, as major indices around the world felt the effects. The Russell 2000 small-cap index entered correction territory, as did the FTSE 100, the main stock index in the U.K. Back in the States, the Dow dropped into correction territory, and the previously robust NASDAQ did likewise, while moving into the red for 2015. The Dow dropped 531 points for the day.