The US stock market had quite the exciting week, with two days of free fall ending in a sharp rebound. The market ended the week on a high note, but is on course for the worst month in over three years, reports The Christian Science Monitor.
US Stocks went into a swoon last week, due to the slowdown of the world’s second-biggest economy in China.
Just days after China “threw the biggest scare” into Wall Street in years, US stocks have risen up to end the week on a calm note Friday. This suggests the worst could be over – for the time being.
As many are pointing out, the market is a roller coaster ride right now with ups and downs full of turbulence – and the ride is far from over.
On Thursday, Wall Street was up 2 percent, which coupled with hints that an interest-rate hike in September is unlikely, fueled optimism that the worst of the turmoil was over, reports Reuters.
The market slump stopped on Wednesday when New York Fed President William Dudley stated that a September hike was “less compelling.”
By Thursday, data showed a 3.7 percent U.S. economic growth in the second quarter – which was much more than the previous estimate of 2.3 percent.
While the worst might be over, “it’s going to take a while before we get back to normal and we might still see some downward risk,” said Scott Brown, chief economist at Raymond James in St. Petersburg, Florida.
The worst is probably behind us but it’s going to take a while before we get back to normal and we might still see some downward risk.
