The stock market ended the month on a rough note as stocks dropped sharply last Thursday. The 1% declines in most of the major averages erased much of the months’ gains as the Dow Industrials was up just 0.4%, while the S&P 500 was up 0.85%. If the market can hold its gains into the close on Friday, it should help soothe investors.
On Thursday, the market was still trying to digest the very weak advance reading on GDP that was released Wednesday as well as the plunging social media stocks. The hot sectors—like the iShares Nasdaq Biotechnology (IBB)—were down over 3% on Thursday.
Major US markets ended last week on a downward note. However, futures are pointing to a different ending this week, if markets hold up.
With the exception of Nikkei, which was flat for the day, Hang Seng ended over half a percent higher, while the Shanghai Composite jumped nearly 1% to cap off the week. This marks the best week for Asian this year, with the Nikkei putting on over 3.5% to its value from the beginning of the week. Shanghai’s rally today put the index higher 1.1% for the week, while Hang Seng gained 1.7% over the same period.
By Brian Nichols:The long-awaited market pullback has finally begun - or at least there is a chance that the markets will continue its downward trend. Last week, the S&P 500 lost 2% of its valuation, and has traded lower by almost 5% during the last month. With that said, my "5 Stocks To Watch" from last week had an average return of almost 3%.