Courtesy of John Nyaradi.
Markets rallied today after a large sell-off earlier this week; however the future likely looks grim and full of more volatility.
It seems that volatility will remain a way of life for some time to come, as investors continue to respond to the Europe crisis, sluggish US economy, and gridlocked Congress; all of which are issues that still have to be resolved.
The G-20 vowed to help Europe in its sovereign debt crises today, but these gestures seem to echo the fact that policymakers are having a hard time restoring confidence in the global system at large.
The Dow’s plunge this week is the worst weekly performance since 2008; and oil fell below $80 per barrel, which likely indicates further economic slow down if this commodity continues to drop.
And to add more to the doom and gloom to our current situation, the Senate today rejected a GOP spending bill which means that the United States Federal Government is at risk of another shutdown at the end of September. This is the third potential shutdown that Congress and the President have faced this year.
All in all, it was a pretty gruesome week with a huge market sell-off in reaction to the Fed’s “Operation Twist,” continued European woes, and a potential government shut-down next week.
Stay tuned!
Stock Market Summary:
Dow Jones Industrials: (DIA) +.38, +0.35%
S&P 500: (SPY) +.68, +.60%
Russell 2000: (IWM) +.41, +.63%
Nasdaq 100: (QQQ) +.57, +1.06%
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