When it comes to the stock market, volatility is nothing new. This past week was no exception, with US stocks experiencing a rollercoaster of ups and downs. Despite a notable sell-off on Monday, investors managed to claw back most of the losses as the week progressed.
One key factor driving this volatility was the yen carry trade unwind, along with concerns about a potential economic slowdown. The S&P 500 saw its worst day since 2022 on Monday, only to rebound with its best day later in the week. This back-and-forth movement made for the most volatile trading week of 2024.
Fortunately, the week ended on a positive note, with US stocks making modest gains on Friday. A favorable weekly jobless claims report on Thursday helped boost sentiment around the economy and labor market. This turnaround came after last week’s disappointing July jobs report had sparked concerns among investors.
Looking ahead to next week, all eyes are on key inflation data, particularly the Consumer Price Index (CPI) due on Wednesday. Analysts are expecting a moderately stronger consumer inflation reading, but not strong enough to derail the Federal Reserve’s plans to cut interest rates next month.
At Extreme Investor Network, we emphasize the importance of not making investment decisions based on short-term market fluctuations. As Raymond James CIO Larry Adam wisely advises, market narratives can change quickly, but they are not always accurate. It’s essential to take a long-term view when investing in the stock market.
In addition to the stock market, other financial markets showed movement as well. West Texas Intermediate crude oil and gold prices rose, while the 10-year Treasury yield dropped. Bitcoin also experienced a slight decline.
Stay tuned to Extreme Investor Network for more expert insights on navigating the ever-changing financial landscape. Stay informed, stay empowered, and stay ahead of the curve with Extreme Investor Network.