Monday saw a positive start to trading that gradually fizzled out with the thoughts of the Federal Reserve policy meeting, scheduled for Tuesday. Technology stocks were back in favour and the Nasdaq 100 managed a gain of 0.5% for the day. After a great start, the Dow Jones Industrial Average closed slightly down by close of play. Ahead of the Federal Reserve policy meeting on Tuesday, the general feeling was that interest rates would be left alone, rather than being cut further to boost the economy.
Tuesday saw investor confidence push markets higher, following news from the Federal Reserve. Interest rates were left alone and the stance was changed to 'neutral'. This means that their feelings are not to increase rates and not to put them down any lower. This indicates they are ready to move, whichever way the markets go. By the close, the Dow Jones was up by 0.5% (a close not seen for 9 months) and the Nasdaq 100 was just slightly lower.
Wednesday saw both the Dow Jones and the Nasdaq slip into the red by almost 1.5% and over 3.5% respectively. Technology and pharmaceutical stocks were the major culprits. Investor confidence faltered, ahead of Thursday's news on unemployment, the consumer price index and other economic data.
Thursday was the Nasdaq's day, rising over 2.5% by close. The Dow Jones fell slightly which was better than expected, after huge losses during the day. The Philadelphia Federal Index released data much worse than expected, the business index fell to 11.4 in March, from 16 in February. 18 was expected. New orders had also declined. Good news came from the consumer price index which rose in line with expectations. Although weekly unemployment claims were down, the 4 weekly average actually rose. In terms of other economic data, everything seemed the same, as expected, with no gains.
Friday saw the Dow Jones close down by 0.5% and the Nasdaq 100 down by almost 1.5%. Investors received mixed messages from yesterday's economic data, giving them nothing solid to work from.