Traders at the New York Stock Exchange faced a challenging day recently as market volatility continued to rise. The S&P 500 dropped for three consecutive days, largely driven by economic changes, including President Trump’s recent tariff decisions.
Early on Tuesday, stock futures showed signs of recovery. Futures linked to the S&P 500 rose by 1.05%, while Nasdaq-100 futures gained about 0.83%, and Dow futures jumped 593 points, or 1.55%. This rebound was encouraging, but recent trading sessions have been very turbulent.
On Wall Street, trading volume reached a staggering 29 billion shares, the highest in nearly two decades. During one hectic day, the Dow Jones Industrial Average slumped 349 points or 0.9%, after spiraling down more than 1,700 points at one point. The S&P 500 not only dropped 0.2% but also saw significant movement throughout the session, entering bear market territory briefly.
It’s noteworthy how social media chatter impacted market swings. During the day, rumors circulated about a potential pause in tariffs, causing a brief spike in stock prices. However, those hopes were dashed when the White House quickly dismissed the speculation as "fake news."
Treasury Secretary Scott Bessent indicated that tariff discussions could extend until June, with around 70 countries, including Japan, seeking negotiations. Even amid this uncertainty, the 10-year Treasury yield climbed above 4%, hinting at rising investor confidence despite recession fears.
Financial experts are weighing in on the situation. Louis Navellier, the founder of Navellier & Associates, suggested that the fears of a recession might be overstated. He mentioned that the fluctuation in Treasury yields indicates that investors might be more optimistic than previously thought.
Despite these glimmers of hope, the S&P 500 has faced losses of over 10% during the past few trading days, and the CBOE Volatility Index—a measure of market anxiety—soared to around 60, marking a significant spike in fear among investors.
Looking ahead, economic indicators such as the National Federation of Independent Business’s small business index will be released soon, along with the consumer price index. These reports will be crucial for understanding market trends and making informed investment decisions in such uncertain times.
For more in-depth economic analysis, you can check out reports from trusted sources like the National Bureau of Economic Research.
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