Published: Sat, February 10, 2018
Business | By Max Garcia

Wall Street ends whipsaw week on upbeat note

Wall Street ends whipsaw week on upbeat note

Dow futures dropped about 150 points on Wednesday morning as the volatility that has rocked markets for more than a week lingers.

Waite says for long-term investors, Monday's changes shouldn't have a big impact on their investments because highs and lows are expected with the stock market.

The question that vexed traders: were the wild swings of the past two days the start of a deeper move down or just clearing the way to the resumption of the aging bull market, which would turn nine on March 9.

The Dow is 10 percent below the record high it set just two weeks ago, putting it in what is known on Wall Street as a "correction". It rose as much as 349 in early trading.

The Standard & Poor's 500 index, a broader market barometer that many index funds track, was down 6 points, or 0.3 percent, to 2,641.

The index is still hovering near correction territory after reaching a record high of 26,616 on January 26, 2018.

"Equities have traded in a roller coaster fashion all week and today is no exception", said Terry Sandven, chief equity strategist at US Bank Wealth Management.

As well as the all the global market uncertainty, there are signs supplies could be going up again after Iran announced plans to increase production and data showed US crude output hitting record highs.

Few big companies emerged unscathed, with Dow giants Boeing and Caterpillar losing around five percent, around the same range as tech titans Amazon and Facebook.

After a sharp loss Wednesday, benchmark US crude lost 64 cents, or 1 per cent, to $61.15 a barrel in NY.

The market's pullback came with concerns about rising bond yields and higher inflation, reinforced by Friday's January U.S.jobs report that prompted worries the Federal Reserve will raise benchmark interest rates at a faster pace than expected this year.

A 4 percent drop in Chinese shares dealt reeling world stock markets a fresh blow on Friday, as nerves about rising borrowing costs and soaring volatility put them on course for their worst week since the height of euro zone crisis.

Expedia slumped after its latest earnings fell short of analysts' expectations. GrubHub jumped 19.13 dollars, or 27.4%, to 89.04 dollars.

US Securities and Exchange Commission Chairman Jay Clayton said he "can't really say" what caused the dramatic drop in stock prices during recent trading sessions, but that all signs indicate financial markets are functioning normally.

In Europe, Germany's Dax fell 1.2%, while France's CAC 40 lost 1.4%.

Overseas markets have mostly calmed down after plunging earlier this week.

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