BOSTON: Investors could see one last boost to Wall Street stocks in the final trading session of the year on Monday, but they do not expect gains to offset losses in the worst December since the 1930s.
“I think there’s a chance that the market could rally into the end of the year,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma, report agencies.Potential for positive news on a trade dispute with China and anticipation of coming remarks from Federal Reserve Chairman Jerome Powell could lift the market, Dollarhide said. Still, no matter how strong any potential rally is, market unease is expected to remain.
“When you start going through December and it's the worst December since the Great Depression, it leaves a very strong lasting image as to how bad it has been," said Dollarhide. "There’s no getting around that no matter how much we rally tomorrow.”
Last week started off with Wall Street's worst-ever Christmas Eve drop, pushing the S&P 500 to within a whisker of bear market territory. Overall, the global MSCI index, the S&P 500, the Dow and the Nasdaq are headed for their worst years since the 2008 financial crisis.