The volatility that greeted February continued into March and is showing no signs of abating as April gets underway.
Primary reasons for the volatility—
Anxieties that rising trade tensions could lead to a trade war, dampening economic and profit growth.
Tech giants, which had blazed a path for the broader market, have recently come under pressure.
Facebook (FB $155) is facing scrutiny amid privacy concerns, and Amazon (AMZN $1,367) has been the target of a Twitter barrage by President Trump.
The tranquility we experienced through 2017 and into January has given way to big daily swings in the major indexes. The Dow fell 724 points on Thursday March 22, surged 669 points the following Monday, then lost 345 points on Tuesday (MarketWatch, St. Louis Federal Reserve).
The ebb and flow of trade tensions and anxieties in the tech sector account for much of the latest gyrations.
Please be advised that our office will closed Friday, March 30th, in observance of Good Friday. We will resume our regular hours of operation on Monday, April 2nd.
We wish all of our clients a happy and safe extended weekend with their families!
“The market can remain irrational longer than you can remain solvent,” was a remark attributed to the late British economist John Keynes.
Volatility has returned, i.e., selloffs and sharp rallies. But what are the broader themes influencing shares?