U.S. Stocks Bounce Back After Last Week’s Losses
Patricia Villaceran | | Aug 05, 2014 02:30 PM EDT |
(Photo : REUTERS/BRENDAN MCDERMID)
With all the geopolitical issues going on in Gaza, Russia and Ukraine, United States' stocks went in a lot of trouble last week but has recovered Monday.
The recent fall of the stocks were attributed to worries over federal policies and other global credit issues.
The Dow appreciated 75.91 points, equivalent to 0.5 percent increase. However, it is still 7.38 points or 0.04 percent lower than last year's year-to-date performance.
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All in all, the S&P 500 index rose to 13.84 points or 0.7 percent. The Nasdaq Composite Index also rose gaining 31.25 points or 0.7 percent.
The Monday trading was considered a "calm" session compared to the rampage trading last week. It is reported that the S&P 500 last week tumbled to its lowest loss in two years' time. It has worried the Federal Reserve policy and the global market as well.
The concerns were absent from the market on Monday. According to the Chicago Board Options Exchange's Volatility Index, the investors' projections for the market's volatility over the next few weeks dropped to 12 percent.
David Lutz, head of exchange-traded fund trading at Jones Trading Institutional Services, LLC, said that the unsure bets from the stock-market has declined due to "an unwinding of hedges."
However, the trading volume is still light compared to the average trading activity during the past few months. But it still remains an advantage to investors, according to traders. With fewer trades, if an investor would move out of the utilities sector, which has a 0.6 percent decline, to the consumer sector, they will have ample gain, Lutz said.
Meanwhile, some investors are still positive that the stocks will still rise.
Randy Bateman, chief investment officer of Huntington Funds, said that investors are after positives with no other alternatives. He added that the equity market remains reasonably attractive.
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