Hey, guess what?
My prediction was right.
The stock market recovered from the price dip in the previous week.
Janet Yellen's statement to the Congress helps to spark a new rally through the week. She cited that the interest rates would not be increasing much.
In the end, the market indices displayed weekly gains. Most advanced to new record highs too.
What happened next, is nothing usual than the previous episode.
The S&P 500, Dow Jones Industrial Average, and the Russell 2000 struck record highs on Friday.
Don’t forget that earnings season is about to start too.
Expect the earning results to continue to rise at a slower pace until the end of the year.
All due to synchronized global rebound in economic growth and tight cost controls.
But you must remember this.
Company earnings reports can prompt volatility in individual stocks as well.
One way to manage the wild price movement is to watch your stocks daily. And sell off those that are underperforming.
Let’s dive deeper how exactly the market is behaving.
Everyone posted positive returns for the week. Nasdaq led the way with a weekly gain of 2.6%. The financial and technology sectors helped to push the index high. This is followed by S&P 500, Dow Jones and finally Russell 2000. For year-to-date, Nasdaq is showing why it is the best index for 2017. It gave a strong return of 17.3%. Small-capped index, Russell 2000 is still the laggard among the four indices.
Here are the daily charts for the 4 market indices.
For weekly charts, this is how the market indices fared.