After a wild week, Wall Street is wondering if the bubble has burst.
The Dow Jones industrial average swung an eye-popping 1,434 points during one of the most volatile weeks of President Trump’s tenure — and Wall Street is bracing for more pain before the year is out.
The Dow bounced 287 points on Friday, ending the week at 24,339.99 after a two-day losing streak had shaved 1,378 points from the blue-chip index. Solid profits from big banks eased concerns that interest rate hikes and global trade tensions are threatening the US economy.
Still, analysts are worried that broader economic factors could derail the markets that have recently hit new record highs just last month.
“The global economy is likely in danger of going into recession either late this year or early next year,” Bruce Bittles, chief investment strategist at RW Baird, told The Post.
Other markets are feeling the pinch. The S&P 500, a broader index of US companies, dropped 4 percent to 2,767.13. The Nasdaq, a gauge of tech stocks, dropped 3.2 percent to 7,157.21— but only after a major, 193-point rebound Friday.
The selloff came as President Trump declared this week that Federal Reserve Chairman Jay Powell is “going loco,” and was tightening the credit markets too much — and therefore choking off growth.
But market watchers said the Fed is a small part of the picture.
“The fact is, the S&P 500, the Dow, and the Nasdaq made new highs in September, but the problem is that there were only a handful of stocks making stock markets look healthy,” Bittles said.
About 380 of the 500 companies that make up the S&P 500 have fallen at least 10 percent from their 52-week highs — an unusually high amount that signals a fragile market.
Tech stocks in particular took a beating this week.
Apple, the largest company in the world, was within a sneeze of losing its coveted $1 trillion market cap Thursday, when it closed at $214.45, from an all-time high of $229.28 the week before.