Hello traders everywhere. The stock market is finishing up the week mixed, much like the entirety of the week was. We saw wild swings in both the stock market and Bitcoin. And it might not be over yet with a couple of things looming.
There's potential for a government shutdown. On Thursday, the House passed a bill to avoid a government shutdown, but the bill is now in the Senate's hands, where 60 votes are needed to send it to President Donald Trump's desk. Most experts believe that there is a 50/50 percent chance that we will see a shutdown. Historically, a government shutdown has led to a short-term pullback in the stock market.
Consumer sentiment unexpectedly declined in January to a six-month low as American households viewed the economy less favorably, as reported by the University of Michigan report that was released Friday.
The decline in sentiment included a decrease in a measure of buying conditions for big-ticket goods, indicating consumer spending may slow early this year after a solid holiday shopping season.
The setback in purchasing conditions was mainly due to less attractive pricing, according to the University of Michigan. That was reflected in a pickup in increases in expected inflation rates over the coming year and longer term.
At the same time, the expectations index remained stable, with 70% of respondents saying they thought the impact of the tax reform act would be positive. What's more, the survey showed lingering strength in personal finances. Improved finances were reported by half of all respondents, matching the 2017 average which was the best in 17 years.
Key levels to watch next week: Continue reading "Wall Streets Wild Week"