TILITY will be the name of the game on Wall Street this week as uncertainty over the Eurozone debt crisis remains and investors will need nerves of steel to make bets on risky assets like stocks.
The Standard & Poor 500 index’s drop last week of 10 per cent from recent highs meant the benchmark index is now in a correction amid a rally that started on March 2009.
On Friday, stocks snapped a three-day losing streak as investors bought beaten-down shares including banks. But for the week, the Dow and the S&P were off around 4 per cent and the Nasdaq fell 5 per cent.
Analysts said economic data due this week and investors’ speculation that equities may have fallen too much could lead to a rebound in the market. But with the downside momentum strong on anxiety over European debt issues, the market could easily turn and create increased volatility.