It’s beginning to feel like rough seas in the markets these days. As we’ve experienced since the beginning of the pandemic, the market continues to see rising volatility, with plenty of ups and downs. This week was no different, as the major averages hit record highs, only to give back some of the gains the following day.
The culprits this week continued to be the same as in previous weeks, including inflation, the Federal Reserve, the rising coronavirus outbreak and top-notch earnings. In their latest speech and interest rate decision, the Fed continued to keep rates at near zero levels. However, Chair Jerome Powell continued to warn of higher inflation.
Other economic data this week proved to be mixed as well. GDP numbers managed to help spur the market along, but other metrics of consumer, manufacturing and housing health painted a bullish yet stabilizing picture. As did earnings.
While most firms reporting this week helped buoy the markets, a few big bellwethers managed to disappoint. And that continued to provide a choppy trading week.
All in all, stocks still managed to rise and set new records. However, that trajectory wasn’t a smooth one.
Be sure to check out our previous Wrap here, when COVID-19 came back with a vengeance.
