Markets Bounce Back After a Miserable TuesdayMarkets rebounded in trading today, bouncing up about 2% after yesterday's selloff. The Dow posted gains on the day of 293.03 points, and closed out the trading day at 16,351.38 -- well below the 18k floor that it had gone into summer with. The NASDAQ led the day in gains thanks to its tech-heavy holdings. It shot up 113.87 points and closed the day at 4,749.98. The S&P 500 lagged behind slightly, but still grew. It added 35.01 points to close out the day at 1,948.86.
We're All On China's Roller CoasterOn some days it seems like fluctuations in the market can't be explained, and that outside forces are at work driving stock prices up or down.
Gone are the days of 5% yearly growth for the nation of China, and replacing that big boom is a more modest -- and still admirable -- 2% to 3%. But when you’ve spent a decade planning for 5% growth it's hard to let go when the good times are over. Unfortunately, in China at least, the time has come for the good times to end.
Unfortunately the government isn't letting go without a fight, and that means they're using tactics that destabilize world economies to try and keep their own booming. Moves like this latest round of currency manipulation only serve to make other world markets just as complicated and messy as China's own market. Right now, we're all on China's roller coaster and many investors wish we could take a moment and step off.
Oil Found a Bottom at $38After much speculating where oil would bottom out this summer, it looks like we might have our answer. Oil hit rock bottom at $38 per barrel, well above my prediction of $25. Whether or not the price of crude oil will plunge back down and search for a new bottom remains to be seen, but for now it looks like oil has settled in around $45 per barrel.
Of course, while this is relatively good news for the price of oil -- which had been in a freefall -- it's not great news for the Energy Minerals sector as a whole. Stock prices are still falling fast in the sector, with some of today's largest losses coming from Energy Minerals. 4 of the 5 biggest decliners in the S&P 500 were from the sector, a pattern that doesn't look likely to change anytime soon.
Published on Sep 2, 2015By Aaron Phillips