Stocks tumbled to end the week as the Dow fell 394 points to 18,085 on heavy volume. For the week the Dow lost about 2.19% or a little over 400 points. This was the worst trading day since the last worst trading day.
Stocks ended the week with a thud as several members of the Federal Reserve spoke at various locations around the country. Boston Fed President and voting member Eric “Rosie” Rosengren, who is usually a dove, suddenly became a hawk (as in “Seahawk") when he said the Fed should up interest rates because the low rates were risking financial instabilitiy. Other members of the Fed in other speeches also talked of pushing rates up sooner rather than later. This news caught traders by surprise and they ran for the exits as the possibility of a September rate hike is for real although no one knows for sure.
Oil today slipped back after a hectic rally yesterday as WTI crude fell 4.2% to close at $45.61 per barrel. Gold meanwhile pulled back $8.90 an ounce to $1,332. The cause of the commodity pullback was a stronger dollar made possible by talk of higher interest rates in the US.
I am heading out tonight with the Boy Scouts to Camp Parsons where we will plan our yearly schedule which will undoubtedly include hikes and a possible takeover of the world!