The Federal Reserve released a statement this Thursday that there was dropping of the S & P and Nasdaq at the closing. The energy stocks were affected the most and on S & P they were the biggest drag. This was the result of the fall in the price of the crude oil of United States.
After the two day meeting, the Central Bank of the United States stated that it was the strong jobs along with the households which were responsible for keeping the economy on track but the business investment has moderated earlier this year from its rapid pace.
Fed not only did comment about the investments in business, the statements were as suggested and expected to the investors that its next hike in the rate would be in the month of November. Some investors however are hoping that after October there would be a change in the sell-off in the market.
The managing partner at the Harris Financial Group in Richard, Virginia, Jamie Cox stated that the Fed has not yet recognized the part that there is a section of the economy which is slowing a little bit, but that is not going to deter them from their gradual increase, at least not of now.
He further added that there is nothing to point out at for what the market has hoped.
The energy stocks were the most important component of S & P which are responsible for its largest drags.
And now since there is a drop of 2.2 percent decrease as the crude oil futures of the United States, CLc1 confirms of a bear market, which fell by more than 20 percent from the 3rd October because the investors are focusing on the swelling of the global supply.
The global supply has been increasing at a rate faster than what was expected.
Source: Reuters, TheHinduBusinessLine
