Sioux Falls, Sd
Stocks bounced back Friday, after the second worst day of the year. That's despite a cut to 15 of the world's top banks credit rating because of the risk of losses they face in the volatile markets.
Despite bad news on the banking front, sales were good on Wall Street.
"The news when it did come out after market closed yesterday wasn't as worse as expected, therefore you see a jump in bank stocks today," Financial Advisor Tom Carson of Waddell and Reed said.
Moody's Investor Service downgrade of bank ratings was expected since February and Carson says the discounts had already been factored into the market.
"You might see people steer more toward the stronger banks as a result of this downgrade, but as far as markets go, they were oblivious to last downgrade because they had priced that in," Carson said.
Carson says the dip in the market this week had more to do with national and international economic factors. But he says as long as the average investor stays on course, there's no reason to panic.
"We're still in a recession and climbing out of it slowly. But a lot of people are bullish on equities and a lot of people are saying it's going to be a volatile summer, but hopefully we can end the year up," Carson said.
Banks rose the most among 24 S&P 500 groups Friday, rallying 1.7 percent.
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