Traders can let out a sigh of relief as this week comes to a close as the markets appear to be heading back in the right direction! After several days of the markets in the RED, many on Wall Street weren’t sure how long it might take for things to turn around but, as we’ve all come to expect, the markets are unpredictable and, today, it appears that the markets are going to wrap up the week in the GREEN.
The recent market fluctuations stemmed, some believe, from comments out of D.C. that suggested inflation rates are expected to remain stagnate for the time being as the country makes its way out of the difficult position it was in during the pandemic. FED Chair Jerome Powell, however, made comments recently that suggested the U.S. FED is in early discussions about raising the national interest rates in the coming months. This news and uncertainty coming out of the FED left many on Wall Street a bit hesitant to make any drastic investments, clearing the way for the markets to take a tumble.
Another cause of this recent market decline is the continued spreading of the covid delta variant within the borders of the United States. Originally only becoming a rising issue in South America, it didn’t take long for this covid mutation to make its way north and within the boundaries of the United States.
As this new virus continues to spread, many states are considering further mask mandates and/or a complete shutdown to help stop the virus before it spreads to the chaos that we most recently saw with the parent Corona virus last year.
Obviously, another mandated shutdown would be catastrophic for certain industries who are already bleeding and just starting to heal from the injuries they suffered from the last quarantine.
Ending the Week on a High Note!
All these concerns, however, were put aside (at least on Wall Street) this week, however, as the markets made a quick reversal and began heading into the positive sector once again.
As of the end of this week, the DOW rose upwards of 24 points while the S&P and NASDAQ rose 0.2% and 0.36% respectively.
In the travel industry, big names like American Airlines made its way back into profitable territory for the first time in six quarters this week. Mostly due to a rise in travel demand and more than $1 billion of federal support.
American Airlines officials – and many others in the travel industry – are weary to get too comfortable in this economic growth, however, as any future pandemic style restrictions could take these long-reliable names in the industry down a hole of economic uncertainty they may not be able to climb their way out of.
This is especially true in the cruise industry as big names such as Carnival and Royal Caribbean have just started opening back up and setting future sail dates as America looks towards future travel arrangements. Any broadcasted concern over future health restrictions could very well be dire for this industry.
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Despite the many questions that still linger in the minds of many investors on the Wall Street trading floors, this week is one for celebration as the markets have, once again, found their way out of their downward spiral.
If you’re interested in hearing more about the markets and what can be expected of them as we wrap up one week and head into another, we urge you to sit down and join host Celeste Lindman and her group of market professionals on the newest Ask the Pros as they combine their years of trading experience to take a deep dive into their plans for the days ahead.
P.S. – Don’t forget to join professional trader and longtime DTI friend Jack Carter for his latest webinar where he’ll be sharing the details of one of his most profitable investment strategies with you!