The Week Ahead in the Stock Market
June 24, 2013
Market Information for this Week.....
The Week Ahead in the Stock Market – June 24, 2013
Be prepared for more wear and tear on the brain cells and nervous system in the week ahead as the roller-coaster ride is sure to continue! The week ahead could bring more big intraday swings and volatility as asset managers reevaluate their portfolios to adjust to the new regime of diminishing support from the Fed.
The stock market begins the last week of June still rattled by the U.S. Federal Reserve's plans for reducing its stimulus efforts, called quantitative easing, or QE.
The week ahead will also be a time to look forward to the second half, which many economists—and the Federal Reserve— believe will be faster growing than the first half. Therefore, every bit of data, including durable goods, new home sales and home-price data Tuesday, and jobless claims and personal income Thursday, will be important measures for markets.
The Past Week in the Stock Market – June 24, 2013
The Federal Reserve signaled this past week that the U.S. economy may soon be healthy enough to stand on its own after three years of being propped up by trillions of dollars of bond purchases.
However, while the trimming of the program should be viewed as a positive development, Chairman Ben Bernanke thoroughly spooked many market participants this past Wednesday by this statement that the central bank is likely to begin trimming down its asset purchases later this year, and halt the program entirely next year. The statement triggered a wave of selling on Wall Street and in bond markets, with the broad S&P 500 plummeting 3.9% over the two-day span -- pushing down year-to-date gains slightly south of 12%. Also, the Dow Industrials plunged as much as 460 points in just two days.