Financial Stocks Allow Market to Gain for Third Day

An article by admin    No Comments

There is a great deal of speculation on how the markets are doing based on the very slow recovery that seems to be occurring. In the past few weeks alone the Dow Jones has grown by only a few points, often getting single-digit increases at the end of the trading day. While consumer confidence may be bringing the market down, and jobless data only giving it minor increases, financial stocks are helping the market gain new ground.

The Dow Jones and S&P 500 have been growing in value. In fact, recently the S&P 500 reached a 17-month high. However, the market continues to grow slowly because of a lack of investor confidence in the market, which itself is based on the lack of consumer confidence in the economy. One sector that is helping the market recover is ironically the sector that helped to bring it down in the first place; financials.

Financial Stocks are the driving factors

Financial stocks this past week helped the market increase in value for the third straight day. The S&P 500 rose past its January peak during the second week of March, and many investors are hoping that these gains will get more investors confident in the market. The largest gain came from Citigroup, which saw its stock go up 5.6 percent over the last three days of the week. Citibank (c) crossed the 4$ mark for the first time in 2010.

All sectors seem to be dependent upon finance

If not for the rise in financial stocks this past week, things could have been a bit worse for the stock market as a spike in inflation in China has made many investors wary. In China, the inflation rate jumped from 1.5 percent in January to 2.7 percent in February, which signals to many investors that China’s economy may be in trouble.

This past week, the Dow Jones was able to rise by a total of 44.51 points to 10,611.84, but that is still down from its January high by just over one percent. The S&P 500 increased by 4.63 points to 1,150.24, giving the index its highest value since October 1, 2008. The NASDAQ also enjoyed an increase of 9.51 to 2,368.46, giving the index its sixth straight increase.

Market is recovering but at a slow rate

As can be seen by these increases, the market is recovering but it is doing so very slowly. As time goes on, and the market shows marked increases over several weeks, more and more investors will enter the market and that will help it increase in value. How long this will take is something that no one really has any way of knowing.

The stock market is recovering but it is doing so slowly. It has taken some time for the markets to reach their previous highs but as investor confidence grows, so too does the decision by investors to put money into the market. As time goes on, the market will continue to recover as long as sectors like the financial sector continues to grow.

Further Readings

Which companies will come out strong from Recession

What makes a stagnant Economy