Weekly Market Recap: Gone With The Wind…Or Not

Investors experienced an adventurous ride in the markets this week. As the week began, the markets churned down while concerns over oil and China prevailed. Thursday’s meltdown threatened investor and consumer sentiment. By Friday, investors propped the markets back up for the week’s close.
 
 Market stress intensified all week over concerns about oil and China. Oil sunk to $26.21 a barrel, a 13-year low, and concerns mounted over China’s economic slowdown. The S&P 500 has lost 10.5 percent this year as investors fret over sliding oil prices, an economic slowdown in China and rising bond defaults.
 
 On Thursday, Janet Yellen testified on Capital Hill and disclosed that the U.S. is reconsidering negative rate territory. This statement came amid surprising news that Sweden cut deeper into negative rates to minus 0.50 from minus 0.35, and fueled market fever-type hysteria dropping the DJIA nearly 380 points. The University of Michigan’s consumer sentiment index dropped to 90.7 from a reading of 92. The DJIA fell 1.6 percent to 15,660.18 and the S&P 500 fell as much as 2.3 percent during Thursday’s trading and closed down 1.2 percent.
 
 Wall Street turned a turbulent week into a working opportunity. By Friday, big investors started buying big and propelled the DJIA up 313.66 points, or 2.0 percent. The S&P 500 climbed up 35.7 points, or 1.95 percent, to 1864.78. Built on that optimism, oil prices surged over 12 percent and settled at $29.44 a barrel.
 
 Overall, the markets experienced sharp turns, from plunging lows to overnight rebounds. Seemingly, as investor concern intensifies, big buyers are presented with big buying opportunities, which when executed upon, can cause levels of market distortion and inevitably derail corrective traction.How does ad hoc intervention help or disrupt the capital markets system?
 
 Share your thoughts with us! Markets reopen next Tuesday, February 15, 2016 at 9:30am EST.