Buckle up: Wall Street volatility is back with a vengeance
Buckle up: Wall Street volatility is back with a vengeance
Just when you thought it was safe to go back to the market.
If you are an investor who was lulled by the stock ExchangeThe calm and steady gains this summer, you're already awake. Stocks have plummeted in the past three weeks as investors are worried about a sea of problems, including rising interest rates and trade tensions between the US. UU And the United States. China. Both could hurt the growth of the profits of American companies.
The S & P 500 index slumped 9.4 percent in just three weeks, with two separate six-day gusts. He had not had a losing streak since November 2016. With five days to go in October, the index is on track for its worst month in a decade.
Another loss on Thursday will likely push the index to what Wall Street calls a "correction," a 10 percent drop or more since the last high.
For market favorites, such as technology and consumer-focused companies, it has been even worse. As of Wednesday's close, five of the six most valuable companies in the United States had suffered a correction: Amazon, Microsoft, Alphabet, Berkshire Hathaway and Facebook have all dropped dramatically from recent highs, although some of those declines began this summer.
The VIX, an index called "fear indicator" of Wall Street because it measures the volatility that operators expect, is the highest level since February.
The current skid for stocks is the third major problem for the markets this year. The first was a dramatic slowdown in late January and early February, when the S & P 500 lost 10 percent in just nine days due to concerns about a sharp slowdown in China's economic growth that shook markets around the world. . That was followed by a less severe setback in March.
But more recently the actions had been placid. Between the end of June and the beginning of October, the market did not go up or down to 1 percent in a single day. That was similar to the gains the shares got in 2017, when the market gradually rose and ended with an increase of 19.4 percent.
Growing corporate profits, boosted by corporate tax cuts, boosted market recovery this spring and summer. The S & P 500 companies saw second-quarter earnings growth of 25.2 percent, well above forecasts. That helped send the S & P 500 to a new all-time high in September, erasing losses from its "correction" in February.
But now there are doubts that a similar increase in earnings growth will push markets out of their last slip.
The companies began reporting their results for the third quarter last week. And while S & P 500 companies' earnings growth is expected to be around 22 percent, according to S & P Global Market Intelligence, some companies are showing a less than optimistic outlook.
Several large companies, including AT & T and United Parcel Service, have reported earnings or revenues this week that did not meet expectations. And some company executives are warning of rising costs related to rates and inflation in the United States and China.
The absence of an increase in tax reduction and the likelihood of higher interest rates, which can raise the costs of loans for businesses, are also giving investors reason to worry that the growth of the company's profits it will slow down.
That probably means more volatility for stocks.
"The ability to repeat what we had this year is not going to happen," said Terry DuFrene, a global investment specialist at J.P. Morgan Private Bank. "We all agree on that."
---
Business writer AP Alex Veiga contributed to this report from Los Angeles.
.
!function(f,b,e,v,n,t,s)
{if(f.fbq)return;n=f.fbq=function(){n.callMethod?
n.callMethod.apply(n,arguments):n.queue.push(arguments)};
if(!f._fbq)f._fbq=n;n.push=n;n.loaded=!0;n.version='2.0';
n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];
s.parentNode.insertBefore(t,s)}(window, document,'script',
'https://connect.facebook.net/en_US/fbevents.js');
fbq('init', '369524843414444');
fbq('track', 'PageView');
.
SOURCE LINK ERESVIRAL.COM https://www.beviral.online
Comentarios
Publicar un comentario