US Market Indexes Report Gains on Friday

Lloyd Doyle
February 10, 2018

All three had dropped around 2 percent the day before.

On Thursday, the Dow dropped 1,032 points. The global sell-off this week comes at a time when major markets are sitting on near record highs, but analysts believe the ongoing volatility will continue for some more time as equities could be further subjected to both fundamental and technical corrections. Expedia shares sank 16 percent after the online travel services company said costs would outpace revenue growth this year as it battles rivals for market share. The Dow Jones Small-Cap Value TSM Index closed at 9,678.35 for a gain of 112.32 points or 1.17%.

As of Thursday, some $2.49 trillion in value had vanished from the index since its most recent peak on January 26, according to S&P Dow Jones Indices. The Dow ended up 330 points, or about 1.38 percent.

USA market indexes regained some of the week's losses on Friday with a new Congressional spending bill helping stocks to gain.

The Nasdaq declined 5.1 percent this week, marking its biggest weekly percentage loss since February 2016. That's less than the 10 percent drop that is known on Wall Street as a "correction".

Martin, of Globalt Investments, said he did not see anything specific moving the market lower Thursday.

It has been an uncommonly long time since the last market correction, which ended nearly two years ago. Retailers including Amazon and made small gains, a possible sign of confidence the US economy will keep growing. Those include worries about a potential rise in USA inflation or interest rates and whether budget disputes in Washington might lead to another government shutdown.

Even so, the rough stretch for USA stocks is far from the 22-percent plunge that set off the 1987 stock market crash.

Trader Jonathan Corpina center works on the floor of the New York Stock Exchange Thursday Feb. 8 2018. U.S. stocks are lower Thursday morning as losses from the previous day continue
US Market Indexes Report Gains on Friday

The 10-year Treasury came in at 2.83 percent on Friday, with the note yield almost hitting 2.885 percent on Thursday, a four-year high that produced a big equity sell-off earlier this week.

"In the absence of recession, a deep bear market is unlikely", he said.

"For the most part, the rates going higher triggered the decline... once we get through this bout of volatility, the rates will matter again much more". "Corrections are caused by people having to reposition for new environments". He added such sell-offs "are particularly unsettling to investors because it is hard for them to point to a familiar culprit relating to economics, geo-politics or the corporate world". The Nasdaq was up 48 points, or 0.7 percent, to 6,825.

But for today, 10 of the 11 S&P industry groups finished higher, with the top-rated tech (+2.5%) and financial (+1.9%) sectors showing relative strength throughout the day.

In Europe, Germany's DAX fell 1.2 per cent, while France's CAC 40 lost 1.4 per cent. Britain's FTSE 100 shed 1.1 per cent. Energy shares.SPNY lagged as oil prices tumbled. Reversing the previous day's gains, benchmark Sensex and Nifty fell 1.18 per cent and 1.15 per cent, respectively, with investors losing a massive Rs 2.24 lakh crore in seconds. Crude slumped 3.5% on Friday and slipped below $60 a barrel for the first time this year.

The dollar fell to 109.20 yen from 109.70 yen. The euro held steady at $1.2248.

The Standard & Poor's 500 index rose 1.5%, to close at 2,619. The last fall of that size came in August 2011 when investors were fretting over and the impasse in Washington that prompted a US credit rating downgrade.

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