Volatility and concern over world markets was still very evident at the start of Tuesday trading as the markets struggled to regain any of the substantial losses from the prior day.
Following Monday’s performance the major averages remained in correction territory- more than 10 percent below their 52-week highs.
Continued signs of economic weakness in China have driven down commodity prices such as copper and iron and subsequently have hurt companies in the metals and mining industries. Goldman Sachs also cut its end of year forecast for the S&P 500 by 5% due to the sluggish pace of economic activity in China and in the U.S. and a drop in oil costs. Oil prices remained near $45 dollars per barrel. Mega companies like Apple and Facebook were down 3% each, while health-care/bio-tech companies gave back early gains prompting the Nasdaq to fall 1%.
Peter Cardillo, chief market economist at Rockwell Global Capital told CNBC:
“If we don’t hold yesterday’s close that makes me extremely worried that this market is going to enter bear market territory”
Kevin Caron, a market strategist and portfolio manager with Stifel Nicolaus & Co. explained to Bloomberg:
“When we have spikes in volatility, like we did at the end of August, that’s normally followed by some additional choppiness until it peters out. It’s not uncommon to see this around changes in direction for key things like monetary policy. We still have this lingering volatility that we’re working through.”
Here are the final numbers from Tuesday, 9/29/15 on Wall Street:
Dow Jones Industrial Average: 16,049.13 (+47.24/ +0.30%)
NASDAQ: 4,517.32 (-26.65 / -0.59%)
S&P 500: 1884.09 (+2.32 / +0.12%)