“Over the last few days, we have been reminded that risk-off moves happen quickly and can come from seemingly out of nowhere,” analyst Matt Dyer said.
US stocks edged lower on Friday, a day after stocks experienced their best trading day since November 2022.
The strongest day of gains in nearly two years came just two days after stocks experienced their worst trading day since September 2022.
For all of the volatility in markets this week, the S&P 500 is down just half a percentage point, as investors seek direction and juggle prospects of imminent interest rate cuts and the potential for an economic slowdown.
“Over the last few days, we have been reminded that risk-off moves happen quickly and can come from seemingly out of nowhere”, Penn Mutual investment analyst Matt Dyer said.
The volatility was sparked by a confluence of risk factors, headlined by the unwind of the yen carry trade and concerns of a misstep by the Federal Reserve following an uptick in the unemployment rate in July.
