It seems that stocks are in trouble a bit as investors are scared about the Federal Reserve’s bond-buying stimulus program. In a volatile business as stocks, the stocks dove into bad areas after the release of the minutes from the Federal Reserves claiming that they are still on track to slow the stimulus for the central bank. However, they didn’t give any news on whether the slowing down will happen next month or not.
On average, the Dow Jones fell 105.44 (0.7%) to close at 14,897.55. The Standard & Poor’s 500 index fell 9.55 (0.6%) to 1,642.80 as well. The Feds are not giving away too many details and stock investors are expecting to begin tapering in September. However, Wall Street is going to take it in stride. This is because of the central bank telling of the intentions of Wall Street. In a statement the following is what was said about the meeting minutes:
“The minutes didn’t tell us much. It tells us that like everybody else the Fed is confused and they are not getting any clear signals from the economy. That is what you see in an economy bumbling along at 2 percent,” said Erik Davidson, deputy chief investment officer for Wells Fargo Private Bank in San Francisco.
This is making others have to stress on what they are going to do if they go too faster. It seems that there is a lot of finger pointing and this drives many people to do things that you wouldn’t expect. This is what the stock market if they are going to have any success in anything. Some feel that this is the best approach and that it should be reasonable in the long run. Investors are parsing through earnings releases of American retailers and how Lowe’s, a home improvement company, soared up 4%. This also could mean the return of the house market.
In many areas that are the Stock Market, you have to understand that there are things that are going to go up and those which go down. This time, the Feds are a little worried at the outcome of they are now going to get into. Elsewhere, there are others feeling the clash and it is going to interesting to see how they are going to handle things. Some say that the slip in the stock market is going to cause a lot more incidents, but right now it is too early to tell what is going to happen further with it all.