The global market meltdown extended once again on Friday, creating new speculation that a Fed rate hike may not happen in September as many had expected. Bobbi Rebell reports.
C is for two key words that had the markets buzzing this past week - China and correction. China - in focus as worries grow about its economy. Correction - a big buzzword, as the S&P 500 traded below 2,000, with 67 percent of S&P stocks in correction territory defined as a loss of at least ten percent. A combination of fundamental and psychological factors are weighing on the market, says Convergex Chief Market Strategist Nick Colas: SOUNDBITE: NICHOLAS COLAS, CHIEF MARKET STRATEGIST, CONVERGEX (ENGLISH) SAYING: "We've had some tough news. the Chinese economy is probably slowing. The U.S. Federal Reserve is getting more uncertain about when to raise interest rates, but the market is really taking it to a new level by psychologically responding to these inputs and in fact getting quite afraid because they don't know what next." Traders have also cited weakness in commodities and corporate earnings as factors dogging the market. But down at the NYSE- many traders are taking it all in stride. Tim Anderson of MND partners: SOUNDBITE: TIM ANDERSON, MANAGING DIRECTOR, MND PARTNERS (ENGLISH) SAYING: "A lot of people on the floor would like to see the market have a five to ten percent correction, because it's so long since there's been one. And it's almost unnatural. It can be very healthy for the market to have a correction that doesn't do long term damage to the economy." The turmoil not limited to the U.S. World stock markets tumbled, suffering their worst week of the year.