After hitting it off low on 17th and 20th because of a warning of further inflation, the stock market staggered but seems to be in control While 21st of June saw a mixed results. But then on 22nd Fed ex and Morgan Stanley helped the market by reaping more than expected increase in their shares. Well as of Thursday it looked like the fear of inflation and rising of interest rate by the Federal Bank, seems to have been put to rest and the market seems to have stabilised. But 23rd saw a small sink of about 60 points. The reason for the slip might be due to various factors that determine the economic growth, in this case the United States economy seems to have been plagued by increasing unemployment rate, rise in the oil prices, and the inflation level. All seems to have contributed to the decrease. The inflation rate could be curbed with the increased interest rate, which the Federal Bank is likely to announce but the general apprehension faced by the economy is not helping the situation.
The Dow Jones slipped by about 60 points while rising as much as 105 points on Wednesday. Standard and Poor was again low of 6.06%. In general it is reported that Dollar surged a little against the Yen, the gold price was little lower. Of course the crude oil price increased and settled at a barrel costing up to USD 70.84
The inference that I can draw is; that though the week opened positively and there was even a surge ahead by the stock market, the situation continued to be low for the past two days. Again the factors affecting the economic growth have played spoilsports for the market too and the general feeling that there might be economic growth downturn has made the situation worse. To top it is the decision of the Federal Bank on the interest rate that it would be deciding on Wednesday or Thursday has made people apprehensive.