The US stock market suffered the Federal Reserve’s interest rates hike decision last week, but it started to rebound early Monday morning. During early trading, Dow Jones Industrial Average increased 0.64% to 17,238.22, S&P 500 rose up 0.83% to 2,022.24 and NASDAQ Composite climbed 0.91% to 4,967.85.
Dow Jones Industrial Average tumbled 621 points in two days before the rebound. Investors have seen the slumped since the announcement of the Federal Reserve interest rates, last Wednesday.
The rebound of stocks following the decision had a turn because of the increase considers about global market slowdown which trouble in the high return bond market and low price commodities.
On Monday, Brent crude oil price was decreased again 1.6% to $36.28 per barrel. During 2015, Brent crude oil price has tumbled more than one-third. Gold price increased 0.6% to $1,071.30 a troy ounce. In currencies market, the euro slightly increased to against the dollar at $1.0896. The dollar rose up 0.1% compared with the yen at ¥121.26.
"Friday's sell-off underscores the difficulty the U.S. stock market currently has in playing its traditional role as leader of world market rallies. U.S. valuations are full already. This makes the U.S. market vulnerable to risk off moves," Ric Spooner of CMC Markets said in a report.
We're approaching the hoildays and usually stocks move more pronounced during this week.
"Today's calendar is relatively light, and with liquidity getting thinner over the course of the week, the potential for exaggerated moves is very real," said Chris Beauchamp, senior market analyst at IG. "The default direction is still likely to be up, given past performance."