US stocks ended their roller-coaster of a week high with rally in prices of oil and a calmer currency market providing a rare confidence boost. The major benchmarks broke the losing streak of five days but ended in losses for the fourth-straight week.
Markets had been rocked by the move by Swiss National Bank to lift its currency ceiling on Thursday, as volatile prices of crude oil and fears of global deflation weighed on equities throughout the week.
According to The Wall Street Journal, the S&P 500 closed 1.3% up or 26.75 points at 2,019.42 but it dropped 1.2% during the week. The rally in process for oil lifted the energy sector stocks, climbing 3.2% with gains across the board.
The Dow Jones Industrial Average gained 1.1% or 190.86 points to 17,511.57 and lost 1.3% during the week.
The Nasdaq Composite Index closed the day with a 1.4% gain or 63.56 points at 4,634.38 and recorded a weekly loss of 1.5%.
Over the last couple of months, the stock market has been volatile and the drop in prices of oil and the stagnant growth in Asia and Europe stocked fear that the US economy might not withstand any pressures of global deflationary.
Ed Shill, chief investment officer at QCI Asset Management was quoted by Market Watch as having said, “We believe that Wall Street’s estimates of 2015 earning are overly optimistic, as such estimates imply that the US will remain an island of stability while the rest of the world is in serious trouble.”
He added, “The Fed will be on a hard pause form policy changes- I doubt they will increase rates, but I also doubt that they will do another QE program as they are desperate to normalize rates.”
Randy Frederick, managing director of trading & derivatives at Schwab Center for Financial Research said, “Given the oil higher today and not a lot of bad news, it’s not surprising to see stocks higher.”
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