New York City, NY (TFC) – Wall Street analysts are in deep speculation over S&P 500’s future taking a steep dive, dropping as much as 1.3% last night at 9:00 PM ET to conclude the first quarter of 2015.
In the beginning of March, TFC brought you a story regarding traders being ecstatic that the NASDAQ closed at 5008.10, or a 0.9% increase. However, many experts and whistleblowers warned that we should be weary of a currency collapse as previous bubble bursts have shown these same fluctuating trends.
Financial markets have a trend and tendency towards cyclical repetition. Now the Standard & Poor’s nose dive after the end of the first quarter is giving experts, analysts, and the rest of us more cause for concern. It should be noted that this 1% swing is not just of a single stock, those fluctuations happen daily. The S&P 500 indexes the futures of 500 companies all over the world. Bloomberg reported this morning some of the dips in major airlines, as well as others due to lack of jobs forecasted to be added over the course of this fiscal year:
“American Airlines Group Inc. and Delta Air Lines Inc. slumped more than 3.4 percent after Deutsche Bank cut its ratings on the shares amid concerns about their international business. Wal-Mart Stores Inc. and Johnson & Johnson slipped at least 1.7 percent.”
When people typically think about the previous great recession or the dot.com bubble, they think of it exactly that way. As if the market expanded further and further until a burst. Clearly the data above shows fluctuations jumping 150 points one month, and then tumbling the next. This gives experts a really hard time determining the actual moment of a stock market crash. UBS Global’s Juilian Emanuel explains it like this:
“The manic market movement – sharp plunges and even sharper surges – is not unlike the movement seen prior to major market tops in 2007 and 2000.”
When we look at the spread for the last 6 months for the S&P 500 futures we can see that rather ominous trend with drops as much as 200 points, then a couple less impacting valleys that kind of mimic those months previous to our great recession. This information seems to completely conflict with the amount of credit that Obama had given himself during the State of the Union address earlier this year, where he glorified his administration for economic recovery. While there has been some obvious recovery. It has to be asked: If we allow the economy to inflate and burst again, can we really call it a recovery?
The S&P 500 stayed on the decline, but stabilized a little with today’s close, however, this is obviously something that market experts will be keeping their eye on, as should the rest of America.