Connect with us


Market volatility has returned as stocks slide over fears of Fed rate hikes




He Dow fell more than 500 points in the price on Friday morning, with a fall of 1.5%. It was a broad sale, with 28 of the 30 shares of Dow in black. Sales force (CRM) i Microsoft (MSFT) were the only winners, while Intel (INTC), Goldman Sachs (GS) i Walgreens (WBA) posted the biggest falls.

The Dow is now in its fifth consecutive day of losses, falling more than 3% this week.

Bullard, who this year has no voice on the Fed’s policy committee, but will also have a vote in 2022 he said in the interview that the Fed is also beginning to discuss the idea of ​​reducing or downgrading bond purchases.
Wall Street is worried about inflation. But investors are also nervous that the Fed will remove the stimulus it injected into the market during the height of the Covid-19 pandemic.

“There is more future volatility ahead,” said Bruce Monrad, portfolio manager for Northeast Investors Trust. “It should increase as the Fed starts thinking about raising rates and once it starts declining.”

These market rounds may become more routine, which may alarm investors who have become accustomed to being calmer on Wall Street.

In fact, it has been an unusually quiet first half of 2021, despite the madness with it meme stocks I like AMC (AMC) i GameStop (GME) and the great movements bitcoin (XBT) i other cryptocurrencies.
If you look at the broader stock market and the VIX (VIX) the volatility index, in particular, in 2021 has been serene for investors.

“Volatility has been very low because the market generally supports improved earnings,” said Marco Pirondini, head of equities at Amundi USA. “But there is always some speculation in other corners of the market.”

The VIX, which many investors call Wall Street’s “fear gauge,” is now hovering around pre-pandemic levels in February 2020. It has been steadily declining since it peaked in March last year. The VIX has fallen by almost 15% in 2021.

But the VIX rose more than 10% on Friday morning and some experts warn that the summer and second half of 2021 could be a little more bumpy than the first six months of the year.

“When you look at the VIX, it’s tremendously quiet. But that’s a little misleading,” said Darren Schuringa, CEO and founder of ASFMmetric ETF, which manages a background designed to reduce investor risk.

Schuringa said he is concerned about the “speculative excess” of meme stocks as well as the technology sector, and thinks a broader market correction could be on the horizon.