The Major Indices Bounces Back after sharp decline yesterday. The Dow Jones Industrial Average Plumetted 416 yeasterday, its biggest one day drop since the September 11th, 2001 Attacks. The S & P 500, and the Nasdaq also closed down. The Dow had investors scrambling to reorganize thier portfolio. Yesterdays portfolio had ripple effects in Asia and Europe, except China. The reason for yesterday's selloff was because of a computer gliche.
The selloff is seen as an advantage for many investors. All the analysts from the major investment banking firms are reorganizing thier portfolio to take advantage of the Dow closing low. Remember not too long the Dow was ralling for more than 7 months setting multiple intraday highs.
Today Federal Reserve Chairman assured that the Economy is stable, and that their is no lack of liquidity in the market when he testified on Capitol Hill today. He also spoke on the markets results of yesterday, and stated that their is no one trigger for yesterdays sharp decline.
Today all three major indices closed higher, the Dow closed up 52.39, the Nasdaq up 8.27 and the S & P 500 up 7.78.
Wednesday, February 28, 2007
The Market Bounces Back
Posted by Soletrader at 3:47 PM
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3 Comments:
Hey Biz,
When do you think the market will bounce back? Is this likely to have a long term effect? What about the change in Asia?
The london market closed lower today and some stocks that I have drop by 30 points it. It was on the news that in Asia, people re-mortgage their homes to invest in the market, however there is likely to be a change in law which will affect this practice, hence the drop in share prices. In your opinion if this comes to fruition which sector is likely to suffer most?
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