Huge stock market declines and then surges are leaving investors wondering what's coming next week -- here's what to expect.
A chaotic week on Wall Street is finally over, in finishing with a flat close on Friday, but there is plenty to wonder about next week — and whether more bad news might be on the horizon.
For one thing, Federal Reserve Vice Chairman Stanley Fischer said in an interview with CNBC that the Fed had not decided yet whether it would raise interest rates in September, but investors seem to believe it’s more likely than it was before, a move that could roil markets, according to a Reuters report.
The market was so volatile this week that the S&P 500 dipped to its lowest level since last October. And yet, the big three U.S. indices all somehow ended the week with gains.
It was a roller coaster ride for investors, with the Dow Jones Industrial Average plummeting hundreds of points one day and then rocketing up by similarly huge margins the next.
A lot of that has to do with global market turbulence that will continue into next week and beyond, especially when it comes to China’s faltering economy and then, of course, when the Fed would raise interest rates.
In all, the DJIA ended down 0.07 percent to settle at 16,643.01, while the S&P 500 increase by 0.06 percent to 1,988.87. The Nasdaq Composite was up 0.32 percent at 4,828.33.
The U.S. economy continues to show strength, with consumer spending increasing in July. Labor numbers also continue to look good, although analysts would like to see an increase in paychecks to go along with the jump in payroll numbers.
Gas prices continue to remain at lows, which is helping consumers but worrying a significant portion of the economy, particularly those who build and supply refineries.