What happened to the market today ? Pretty disappointing day ?
Question is why it happened ?
For starters investors would love to see the interest rates go down. Businesses thrives more with lower interest rate, but Feds showed no sign of cutting interest rates any time soon to control inflation. This lead to a panic and sell market. Add to that the previous few days the stocks were up and it will time for the shorts to jump in. Unfortunately a strong job report didnt get the nod from investors either. However with dropping oil prices, consumer confidence grows and we will soon see an upward trend. The current interest rate stands at 5.25%.
Who got hit bad ?
- Tech stocks got hit the hardest. IBM, Intel, Dell, Oracle, Ebay, Motorola all down.
- Gold was down too, with trading around $606 an ounce.
- NYSE: Stocks going up v/s down was 24% v/s 74%
- NASDAQ: Stocks going up v/s down was 30% v/s 69%
- Positive note was that dollar improved over euros.
- Oil trading at 56.35$
All is not lost. With alot of stocks getting cheaper, there are alot of good buys. Dont let one bad day dishearten the slaughtered ones…What goes down sooner or later goes up…