Markets Drop, But Not In Fear

Yesterday the markets gave back about two thirds of the gains reaped from last Thursday. Although this is not the case for the Dow Transportation index and also the Russell-2000.

Analysis focused primarily on the Dow Jones which crumbled -0.26% and the S&P500 -0.39%.

The Nasdaq dropped 0.77% but had jumped 0.63% on Friday and remains above 4.450Pt,: if we are watching only these three indices, the upward trend is not threatened.

A question of doubt will most likely settle on the eve of quarterly earnings (Alcoa results expected Tuesday night just after closing).

Although we have nothing to fear from the macroeconomic background, as the week has just begun will be devoid of major economic statistics.

The decline on the day was inspired by fears of inflation reappearing sooner than expected (which would encourage the Fed to change its monetary policy) but the bond markets do not share this concern because the performance of T-Bond 10 years eased to 2.615% against 2.645% last Thursday.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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