The markets closed out a tumultuous trading week with a powerful selloff that accelerated dramatically in the last minutes of trading amid worries about the European debt crisis and the global economy.
The Dow Jones Industrial Average last week dipped 137 points, or 1.1%, to 12850, the S&P 500 dropped 17.3 points, or 1.3%, to 1370 and the Nasdaq Composite fell 44.2 points, or 1.5%, to 3011.
Despite posting big gains on Wednesday and Thursday, the markets, as quoted by Foxbusiness.com, fell sharply on the week. The Dow shed 1.6%, the S&P 500 dropped 2% and the Nasdaq tumbled 2.2%. It was the worst week of the year for all three major market averages.
The VIX, which some call Wall Street's fear gauge, surged 16.3% on the week as traders grew increasingly anxious about the state of the global economy and the European debt crisis.
Financials tend to be particularly sensitive to developments on the eurozone debt crisis since they can often have a direct impact on the banking sector. Indeed, the financial sector was pummeled on Friday in the worst one-day slide of the year.
China's economy, the second biggest in the world, expanded at an annualized pace of 8.1% in the first quarter, a sharp drop from the 8.9% registered in the last quarter of 2011. Economists were looking for a slightly better reading of 8.4%.
Asian shares managed to shrug off the disappointing data as market participants are already looking forward to the see where growth is headed in the current quarter. Analysts also cited the improving chances the Beijing will act to stimulate growth. Although, some already see improving conditions there.
"Credit and money data suggest that financing conditions are already improving, which should in turn help stabilize economic growth and reduce the need for aggressive stimulus," analysts at Barclays Capital wrote in a note to clients following the report.
Today, Jakarta Composite Index may continue its gain to the resistance level of 4,215 and support of 4,123.
Today, The JCI may move within the range of 4,130-4,193 with potential gain. Several stocks to watch: MNCN, AKRA, and ELTY. Last week, the index inched up 19 points or 0.47% to 4,159.27.
Technically, the index today may rise within the range of 4,125-4.171. The US economy data such as inflation will provide sentiment to the index.
Disclosure: No position at the stock mentioned above.