12 April 2014
US Market rout over or it is just the beginning ?
Last week, we see a drop in S&P 500 index since January 2014. This is especially for the tech stocks. To date, the US stock market hasn't had a correction, or fall of 10 percent from recent highs, since 2011. It seems that the sell off is in the tech stocks. Prices plunged over the week. The first-quarter earnings season has just started, but investors seem in little mood to wait for results. Financial analysts expect earnings for companies in the S&P 500 to drop 1.6 percent from a year earlier, according to FactSet, a financial data provider. At the start of the year, they expected a jump of 4.3 percent. On Friday, the Nasdaq dropped 54.37 points, or 1.3 percent, to 3,999.73. It was down 3.1 percent for the week. The Dow Jones industrial average fell 143.47 points, or 0.89 percent, to 16,026.75 on Friday. The S&P 500 fell 17.39 points, or 0.95 percent, to 1,815.69. JPMorgan Chase fell $2.10, or 3.7 percent, to $55.30 on Friday. Is this the start or just a correction? The next probable impact would be the next 10BN tapered off from QE3. Will USD rises and stocks drop ? We shall see.