News / USA

Markets Bounce Back on Wary Wall Street

Michael Pistillo (R) works with a fellow specialist on the floor of the New York Stock Exchange, August 9, 2011
Michael Pistillo (R) works with a fellow specialist on the floor of the New York Stock Exchange, August 9, 2011

World financial markets are calmer, with many stock indexes higher after Monday’s brutal global selloff. On Wall Street, the Dow Jones Industrial Average gained almost 2 percent in the morning. Many investors now are looking to see what happens at the U.S. Federal Reserve board’s meeting.

After the New York Stock Exchange opened on Tuesday morning, Peter Cardillo, the chief market economist for the Rockwell Global Capital investment firm, was guardedly optimistic.  

“The markets are trying to rally this morning.Obviously, we are going to have an anemic [weak] bounce until we hear from the Fed [Federal Reserve]. I think all eyes are pointing to the Fed’s communiqué this afternoon," said Cardillo. "Hopefully they will try to calm the markets.”

The policy-making committe of the Fed, the United States’ central bank, is holding a regular meeting Tuesday.

Countries with the highest possible AAA sovereign debt rating by all three major rating agencies, including Standard & Poor's:

  • Austria
  • Canada
  • Denmark
  • Finland
  • France
  • Germany
  • Luxembourg
  • Netherlands
  • Norway
  • Singapore
  • Sweden
  • Switzerland
  • United Kingdom
  • Countries rated by S&P one step below the top at AA+:

  • Belgium
  • New Zealand
  • United States
  • In tough economic times the Fed often tries to stimulate growth, and investors around the world sometimes base their market decisions on what the Fed does.

    Cardillo says the biggest task facing the Federal Reserve is convincing investors that the economy is not headed for a recession.

    “And also perhaps maybe hint at some further stimulus, perhaps taking away the interest on reserves and that would help them stimulate more loans and keep liquidity floating within the system… and we can get into some sort of consolidation process,” Cardillo added.

    Cardillo doubts the American economy is going into a recession, yet is certain that fear will continue to play a major role in the coming days in how global markets act.  

    “And you could see the fact that the price of gold continues to make new record highs, going up sharply over the past few days just equates with the fear factor," said Cardillo. "And that fear factor means that people have lost confidence in the lawmakers to address issues that could be negative for economic activity.”

    The rally on Wall Street Tuesday morning follows gains in some European markets. Most stock markets in Latin America also saw share prices rise. In Asia on Tuesday, major indexes fell by 2 percent or more, although many saw buying late in the day that cut some of the losses.

    You May Like

    Ebola Death Toll Nears 5,000 as Virus Advances

    West Africa bears heaviest burden; Mali toddler’s death raises new fears More

    Jordan’s Battle With Islamic State Militants Carries Domestic Risks

    There are Western concerns Islamic State militants soon may unleash offensive in kingdom that could create upheaval - though nation has solid intel, grip on banking system More

    Asian-Americans Assume Office in Record Numbers

    Steadily deepening engagement in local politics pays off for politicians like Chinese-American Judy Chu More

    This forum has been closed.
    Comments
         
    There are no comments in this forum. Be first and add one

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    After Decades of Pressure, Luxembourg Drops Bank Secrecy Rulesi
    X
    October 21, 2014 12:20 AM
    European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
    Video

    Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

    European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
    Video

    Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

    Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
    Video

    Video China Political Meeting Seeks to Improve Rule of Law

    China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
    Video

    Video US ‘Death Cafes’ Put Focus on the Finale

    In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
    Video

    Video Ebola Orphanage Opens in Sierra Leone

    Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.
    Video

    Video Young Nairobi Tech Innovator on 'Track' in Security Business

    A 24-year-old technology innovator in Nairobi has invented a tracking device that monitors and secures cars. He has also come up with what he claims is the most robust audio-visual surveillance system yet. As Lenny Ruvaga reports from the Kenyan capital, his innovations are offering alternative security solutions.
    Video

    Video Latinas Converting to Islam for Identity, Structure

    Latinos are one of the fastest growing groups in the Muslim religion. According to the Pew Research Center, about 6 percent of American Muslims are Latino. And a little more than half of new converts are female. VOA’s Carolyn Presutti travelled to Miami, Florida -- where two out of every three residents is Hispanic -- to learn more.
    Video

    Video Exclusive: American Joins Kurds' Anti-IS Fight

    The United States and other Western nations have expressed alarm about their citizens joining Islamic State forces in Syria and Iraq. In a rare counterpoint to the phenomenon, an American has taken up arms with the militants' Syrian Kurdish opponents. Elizabeth Arrott has more in this exclusive profile by VOA Kurdish reporter Zana Omer in Ras al Ayn, Syria.
    Video

    Video South Korea Confronts Violence Within Military Ranks

    Every able-bodied South Korean male between 18 and 35 must serve for 21 to 36 months in the country’s armed forces, depending upon the specific branch. For many, service is a rite of passage to manhood. But there are growing concerns that bullying and violence come along with the tradition. Reporter Jason Strother has more from Seoul.
    Video

    Video North Carolina Emerges as Key Election Battleground

    U.S. congressional midterm elections will be held on November 4th and most political analysts give Republicans an excellent chance to win a majority in the U.S. Senate, which Democrats now control. So what are the issues driving voters in this congressional election year? VOA National Correspondent Jim Malone traveled to North Carolina, one of the most politically competitive states in the country, to find out.
    Video

    Video Comanche People Maintain Pride in Their Heritage

    The Comanche (Indian nation) once were called the “Lords of the Plains,” with an empire that included half the land area of current day Texas, large parts of Oklahoma, New Mexico, Kansas and Colorado.The fierceness and battle prowess of these warriors on horseback delayed the settlement of most of West Texas for four decades. VOA’s Greg Flakus reports from Lawton, Oklahoma, that while their warrior days are over, the 15,000 members of the Comanche Nation remain a proud people.
    Video

    Video Turkey Campus Attacks Raise Islamic Radicalization Fears

    Concerns are growing in Turkey of Islamic radicalization at some universities, after clashes between supporters of the jihadist group Islamic State (IS) or ISIS, and those opposed to the extremists. Pro-jihadist literature is on sale openly on the streets of Istanbul. Critics accuse the government of turning a blind eye to radicalism at home, while Kurds accuse the president of supporting IS - a charge strongly denied. Henry Ridgwell reports from London.

    All About America

    AppleAndroid