What Next After Stocks Sell-off? Stability, Analysts Say

The Dow and the S&P suffered their worst plunge Thursday since 2011, a day after another big drop — but most analysts, according to CNBC, expected the sell-off. The market, experts say, was ready to pull back after a steady climb for months. "I do think this is the beginning of a long-term trend in rising rates," said one economist. "But I don't think this is the beginning of a longer-term trend of a decline in stocks. I think stocks will stabilize." Another analyst agreed, saying the sell-off could set the stage for a more stable market, and less speculation. "If this sell-off continues, you will see buyers coming in. This is the way markets are supposed to act," one strategist said. Thursday's stocks plummet came on the heels of hints Wednesday from the Fed that it could soon wind down its bond-buying program provided the economy keeps recovering — a hint that has prompted the markets to react fearfully to promising economic data.

Read More

Contact Us