anyoption | Oct 05, 2014 06:13AM ET
Last week was a huge week for the stock market. Last week was the transition week that moved the markets from the third to the fourth quarter; also marking the first trading day of October. Historically, this transition is a bit rocky; which is exactly what we saw last week. Wednesday was the first day of October and prompted a widespread sell off that hit all 3 major indices in the United States. While Thursday didn’t move the markets much either way, on Friday, we saw a great recovery. Today, we’ll talk about what we saw Wednesday, Thursday, and Friday; and explain why it is that we saw what we saw.
Wednesday
As mentioned above, Wednesday was a big day for the stock market. Marking the first day of October and the fourth quarter, Wednesday lead to a wide-spread stock sell off. With concern over geopolitical issues as well as investors becoming increasingly skittish about the Federal Reserve increasing interest rates sooner than possible, the transition into October seemed a bit worse than normal this year. Here’s what we saw…
While Thursday didn’t bring as much of a sell off as Wednesday did, it proved to be a bad day for the second day in a row. With economic data coming out Friday, investors seemed to slowly unload anything that was concerning them. Here’s how the day went.
On Friday, we received economic data showing that we’ve seen job growth in the United States. On the other hand, we’re not seeing a major increase in salaries. The new data was a perfect mix of good and bad news. While the economy was getting better, poor salary growth should stop the Federal Reserve from increasing interest rates. As a result, investors started to show that they were happy. Here’s what we saw.
With the perfect mix of employment data, we’ve started to see investors’ concerns die down. As a result, we’ve started to see improvements in the market. The big question in the beginning of the transition was “Is the bull market gone?” What we saw late Thursday and early Friday gave us the answer…”The Bull hasn’t left just yet!”
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