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Feb 25 2016

Wall St eyes China; energy shares remain in focus

Market Recap 2/24/16:

U.S. stocks rallied on Wednesday, with major indexes turning sharply higher in afternoon trading following a rebound in crude oil prices. The day’s trading was volatile, with Wall Street having opened lower, pressured by an early drop in commodity prices. However, a late stabilization in crude prices translated to the broader market, providing a lift to energy and material shares. Investors have been concerned that weakness in the energy market – which is suffering from both low demand and oversupply issues – could portend a broader economic slowdown. However, there have recently been signs that oil prices had put in a bottom, even without a deal by major oil-producing nations to cut or freeze their production. While volatility is expected to remain high in both the energy and equity market, Wednesday’s rally could serve as further evidence that a bottom was put in.

Looking ahead: 

U.S. stock index futures fell on Thursday, as investors kept a close eye on trading in China. Markets in the world’s second-largest economy fell by 6 percent, the latest example of heavy volatility in the region. Growth rates in China have been a major market factor of late, though the correlation between China and the U.S. have waned recently. Nonetheless, the slump in China underlined the concerns that remain, and pushed crude oil prices lower, which could add further selling pressure to energy companies. Investors are also looking ahead to the latest read on weekly jobless claims. Don’t miss this week’s Money Matters with Gary Goldberg; for stations and air times, please click here. Visit our website at www.ggfs.com for more details, including for a free, no-obligation portfolio evaluation.