Markets posted their fifth straight session of gains Thursday, bouncing back from a deep sell-off that sent the Dow into a correction. Jurrien Timmer, Director of Global Macro at Fidelity, breaks down why there has been such choppy trading in the markets.
Timmer says the two years leading up to the correction were unusually quiet due to the markets firing on all cylinders. Last August was a pivotal moment for markets because the chances of corporate tax cuts spiked. Timmer says another factor was the bond market because it was way too complacent about the possibility of rate hikes.
The VIX index, which serves as a "fear gauge" in markets, spiked in recent weeks. Timmer places the blame on hedge funds and traders who were short volatility. He added that the fundamentals of the economy are still relatively constructive and volatility will settle back down.
Financial services company Marqeta released its fourth annual state of payments report which reveals how widely Americans have adopted new technology like mobile banking and wallets. Marqeta CEO Simon Khalaf joined Cheddar News to discuss how common digital payments have become.
Katherine Rooney Vera, chief market strategist with StoneX, joined Cheddar News to discuss what investors should expect as the S&P closed near a nine-month high with volatility levels at their lowest level in over three years.
Coinbase has been targeted by U.S. regulators in a new lawsuit Tuesday that alleges the cryptocurrency platform is operating as an unregistered securities platform and brokerage service.
