- Wall Street gets modest rise after a chaotic December
- 2018 was the worst year for major indexes in the United States
- The outlook for 2019 is bleak
During Christmas week, one analyst on Wall Street remarked that “Everyone is in a wait-and-see mode” as losses currently outweigh gains.
As investors rang in the New Year on Monday, Wall Street saw a modest rise. Despite the end of what many analysts refer to as the worst year for major American indexes, investors are still waiting to see what happens after the events that followed Christmas Eve of 2018.
December 2018 was a particularly difficult month for American equities. The S&P 500, for example, will be posting its worst December in decades. According to analysts, the numbers are akin to those of the Great Depression.
Nasdaq, on the other hand, is already in a bear market. It is currently 20% below its high, experts note.
The modest rise for the first few days of 2019 is being compared to January 2018, when indexes were strong. Much of 2018 was challenging, even as major banks in the United States made billions of dollars. Tariff disputes, rates hikes, and corporations being anxious about their diminishing profits all contributed to the slowdown, experts say.
“We were very strong through most of the year. It’s really been the last quarter where things fell apart a bit. People got nervous in large part because of unknowns facing the markets,” said TD Ameritrade Chief Market Strategist JJ Kinahan.
Things may be looking up, according to analysts, but Wall Street is reportedly not yet convinced that the markets will stabilize any time soon. Reports about a looming financial crisis have been slowing down over the past few days, but Wall Street is still reportedly in alert mode.