Much of the recent investor unease has centered around rising interest rates. There are many ways to think about interest rates: as a tool for generating portfolio income, as an important factor in stock prices, as a signal for the business cycle, as a risk indicator for Fed policy, and more.
Stocks tumbled this week, with the S&P 500 dropping 2.0%. The Nasdaq Composite did a little better, and the Dow Jones Industrial Average did a little worse, losing 1.1% and 3.1%, respectively. The small-cap Russell 2000 showed relative strength, but still finished lower by 1.0%.
Equities advanced this week thanks to a last-minute rally on Friday that reclaimed losses registered on Tuesday and Wednesday. The S&P 500 and the Dow Jones added around 0.5% apiece, while the tech-heavy Nasdaq outperformed, jumping 1.4%.
The equity market bounced back this week, reclaiming about half of the losses it registered over the previous two weeks. The tech-heavy Nasdaq climbed 5.3% as technology shares outperformed, while the S&P 500 and the Dow Jones added 4.3% apiece.
Last week, on February 8th, the market experienced a technical “correction.” A correction is defined simply as a decline of 10% or more from the most recent high. We’ve since recovered a significant chunk of that reversal, thanks to a few good days of large gains.
A Wild Ride. The stock market dropped sharply this week, with the S&P 500, the Dow Jones, and the Nasdaq losing around 5.0% apiece in volatile trading.
Days like today, and last week, are not fun for stock investors. The S&P 500 was down 4% today and has lost around 7% over the last five days. After a freakishly calm 2017, our old friend, Volatility, is back.
The market continued its strong start to 2018, posting gains for the fourth consecutive week. The Nasdaq jumped 2.3% this week, while the S&P 500 climbed 2.2%, and the Dow Jones Industrial Average advanced 2.1%.
Well, 2017 is in the history books! Our Q4 2017 Newsletter features articles on the markets, investing, and financial planning. We hope you find them helpful.
Still Rolling. Equities kept the new year rally going this week with the Dow Jones Industrial Average, the Nasdaq Composite, and the S&P 500 adding between 1.6% and 2.0%.
Rising Rates: Good or Bad?