How to invest for the stock market’s big day
Investors can expect to see more volatility this week as the markets open, according to research by analysts at the firm S&P Dow Jones Indices.
The index, which tracks nearly 600 major stock markets, is forecasting a drop in trading volume on Thursday due to uncertainty over the US election.
“We think the market will go up from there,” said James B. Miller, managing director of S&p Dow Jones Industrial Average.
The S&P Dow index was down 1.2 percent in midday trading on Thursday.
The Dow is up nearly 60 percent over the past decade.
A number of large stocks are expected to see gains on Thursday, including Apple, Amazon and Microsoft, as investors try to get in early.
“I don’t see any reason why we would not see a huge rally on Thursday,” Miller said.
“The fundamentals are there, there is no question about that.”
Dow futures fell more than 1 percent after hitting their highest levels in more than three weeks on Tuesday, as speculation about President Donald Trump’s plans for healthcare and other topics stoked fears of a sharp market downturn.
S&s Dow Jones index was up just over 1 percent, or $1.35, in early trading Thursday.
But the Dow is still up more than 50 percent from a year ago.
A broad range of indexes including the S&ips S&ap Index and the S.&.
M&us Index all rose.
Investors may see a spike in volume for Thursday’s trading, as analysts said they were expecting a selloff in equities as uncertainty over Trump’s election policies and possible financial turmoil over the healthcare system continued to affect the markets.
“That’s a real problem,” said Peter Pintak, chief investment officer at S&Ps Global Growth.
“It’s a big problem.
It’s one that’s coming.
It will be exacerbated by the election.
We’re looking for a correction.”
S&aps Dow Jones Index was up more to 1 percent in early trade, but was down almost 5 percent in after-hours trading.
Shares of Walmart, which has been battling a string of protests over pay, saw its stock plunge more than 2 percent.
Shares in the grocery giant fell 2.9 percent.
The U.S. stock market rose nearly 50 percent since the start of the year.
It was the biggest gain since August.
The rally has continued through the week, with the Dow rising more than 40 percent over that period.
But as Trump’s inauguration nears, investors may be concerned that the administration could weaken the financial stability of the country.
The president has threatened to withhold federal funding from banks that fail to meet a deadline for complying with stricter financial rules.
The economy has slowed, but the unemployment rate is still above 8 percent, the highest it has been since the Great Depression.
And the Federal Reserve said Thursday it would start to raise interest rates in a bid to stave off further recession.
“People are anxious, but they’re also optimistic,” said Paul Ashworth, chief strategist at BMO Capital Markets.
“They’re confident that things are improving and are ready to take advantage of the recovery.”