Stocks this week continued with their current theme of volatility. As with the last few weeks, technology shares and rising bond yields continued to cause wild swings in the market. Inflation expectations have continued to rise as have yields in safe-haven assets. For investors, this fact continued to see them selling technology and high-growth stocks and move into cyclical companies.
Data this week continued to support a growing economy, albeit, a slow grind. Measures of labor health, manufacturing prowess and consumer confidence continued to show a strengthening economic picture. Again, worrying investors about the possibility of higher inflation. Comments from Federal Reserve Chair Jerome Powell didn’t steady the market on that front.
As for earnings, the season is winding down. Most bellwethers already reported, and those stocks that did announce this week provided a continued cautiously optimistic picture.
However, rising bond yields and tech stocks managed to cause plenty of seasickness for investors.
Be sure to check out our previous Wrap here when rising bond yields pulled down the markets.
