As they say, history doesn’t repeat itself, but it sure does rhyme, and investors have been treated to that fact since the beginning of the year. Many of the issues that hit stocks at the end of 2018 have bubbled over into the new year. And that includes a hefty dose of trade woes.
The trade war between the United States and China has long been a major sticking point for investors and gains/losses have ebbed and flowed based on every bit of new information. This week was no different. A potential resolution kicked the week off in a positive tone and sent stocks higher. However, like before, until a deal is officially signed, much of the enthusiasm drifted by the end of the week.
Data was hot and heavy as the first full trading week saw plenty of economic numbers released. Many of these numbers threw cold water on the week’s gains as less-than-bullish data made traders nervous once again. However, this poor data helped traders believe that the Fed will end its pace of rate hikes.
With no real earnings data released, stocks continued their pattern of big price swings on the trade news and drifting data.
Be sure to check out our previous Wrap here, where we discuss how last year’s problems spilled over to this year.
