Wall St Week Ahead -For US stocks, investors mull a correction | GulfNews.com

New York: This week may show whether US stocks are finally undergoing a long-awaited correction or if a recent run of losses are just a bump on the road to more gains.

It’s been more than three years since the S&P500 has dropped 10 per cent or more. This month, the benchmark index fell five sessions in a row, from Jan. 8 through Jan. 15, shedding more than 3 per cent in the process. Since December 29, the index has fallen almost 5 per cent through Thursday’s close.

What to make of the declines is less clear. The sell-off has left shares more reasonably priced: The forward looking price/earnings ratio of the S&P500 stood at 16 on Friday, down from 20 at the end of 2014.

US investors have been spooked by a collapse in commodities and may not be sure whether that’s a signal to buy or sell. Oil prices have fallen in half in recent months, trading below $50 a barrel at around six-year lows.

Wall St Week Ahead -For US stocks, investors mull a correction | GulfNews.com

Wall St Week Ahead -For US stocks, investors mull a correction | GulfNews.com