January 29 Market Close: GovCon Index Surges Out of Correction to End Volatile January

The GovCon Index surged out of correction territory Friday with a gain of 2.643 percent to 71.807 which mirrored investor optimism that the Federal Reserve may slow down future interest rate hikes and a bounce-back from technology stocks.

The Index ends the week at a 2.81-percent loss and the first month of 2016 with a 6.67-percent decline driven by choppy activity in global financial markets and investor responses to this past week’s round of earnings statements from some of GovCon’s biggest firms for the fourth quarter and 2015.

Japan’s central bank decided to cut interest rates by surprise Friday and that also helped spur across-the-board rallies in U.S. stocks in the last trading day of January to end a month marked by volatility amid declining oil prices and worries about the global economy.

An advance read on the fourth quarter said the U.S. economy expanded at a 0.7-percent annualized rate that some traders believe could give the Fed pause as to the pace and timing of future rate hikes, Reuters reported.

Crude oil futures in the U.S. settled up 1.2 percent after traders saw reports that Iran may not take part in a deal between OPEC members and other producing countries to reduce global supply, according to Reuters.

Top GovCon Index Gainers

*Also listed in the S&P 500 composite index

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