Wall Street endured a volatile week as the DJIA or Dow Jones Industrial Average closed 0.5 percent lower on September 17. Traders now are keenly interested towards the meeting scheduled to be held on the issue of revising of interest rates during the third week of September. The Federal Reserve will hold this meeting. David Rosenberg of Gluskin Sheff told clients that the market has ended the week with a bearish tint. Rosenberg works as a strategist and chief economist at the firm. A similar sentiment is echoed by the Bespoke Investment Group. They said that the market has risky tone on Friday.
Stocks went up from their session lows before the markets closed for the day. The Dow restricted losses to below 100 points, losing 89 of them. The Standard & Poor 500 and the Nasdaq posted smaller losses- they went down 0.4 percent and 0.1 percent respectively. Not all things are bad, however. The volatility of the market is pointing towards the upside. There are reasons to be positive: the Dow, for the most part, was up by 90 points during the week.
The market moves are oriented towards the upside even as the market does wild swings. Investors continue to gauge whether the central banks will support the markets as they historically did. The markets did move up after it slid 400 points down in the first week of September. The Dow has made three different triple digit moves during the second week, and two of them are clearly bullish. The Dow went up almost 200 points on September 15, canceling the 260 point dip on September 13. A 240 point surge was observed in this blue chip gauge. The European banking sector, similarly, exhibited more turbulence, in all probabilities influenced by the United States stock markets.
Deutsche Bank, the prominent German financial institution, has been forced to reach a civil settlement of $14 billion with US Justic Department. The former has allegedly played an important role in pushing up the American housing market during the time up to Great Recession. Shares of the bank dropped 8.4 percent in New York to scrape $13.50 during pre-market activity on September 16. This happened after Deutsche confirmed that the negotiators from Department of Justice has carved a $14 billion open position during discussions. The bank said that it will fight demands made by the American Government.