Volatility ran high this week, as the continual push and pull of the news cycle took hold. Initially, stocks spent the first half of the week trending lower as economic data continued to be less than ideal, both here and abroad. Measures of industrial health, consumer strength and other key data continue to slip. This has been true in key international markets like Germany and China.
Losses also accelerated on the news that House Democrats have started impeachment hearings for President Trump. While the Ukraine scandal is unfolding, intelligence officers have identified multiple White House officials with regards to potential presidential misconduct. The news was not taken lightly by traders who saw the potential end to Trump’s pro-business policies.
However, there are a few bright spots on the week as well that helped recover some losses during the tail end of the week.
While the earnings season is officially in winddown mode, a few key bellwethers reported strong figures as well as gave better-than-expected guidance reports. Meanwhile, the trade war could be ending sooner than later as initial talks between the U.S. and China this week bore fruit.
All in all, the continued nervousness and uncertainty played out once again for the major averages. The news cycle continues to drive the show.
Be sure to check out our previous Wrap here, where the Powell delivered what the market wanted.
