Will Stock Market Volatility Lead to a Bear Market?
*By Kavitha Shastry*
Another roller coaster day on Wall Street saw markets roar out the gate Friday, with the Dow Industrials opening up 400 points, giving back all those gains and then some by midday, and ultimately closing up a little more than a percent.
The rally wasn't enough to fully erase the pain investors felt earlier in the week, though, and major indexes posted their biggest weekly losses since March.
"Right now there's a bit of a tug of war ー are we heading into a bear market or is this just a normal correction?" asked Jason Browne, chief investment strategist at Fund-X. "It's still way early to know."
Tech stocks were able to recoup some of their losses Friday, with the so-called FAANG names adding back almost $100 billion to their collective market cap ー about half of what they lost over the previous two days.
The sell off comes just before third quarter earnings season kicks off in earnest, with Netflix ($NFLX) set to report after the bell next Tuesday.
"Anything negative is going to be a real problem right now," Browne said. "In general you're going to have to hear a little bit about, what is the impact, if anything, that rising rates are having on consumers? What is the impact trade wars are having on supply chains? What do they think about input costs?"
U.S. interest rates have risen to their highest levels in more than seven years, sending shares of homebuilders Toll Brothers ($TOL) and Lennar ($LEN) down on the fear of rising mortgage costs. As for tariffs, retailers from Walmart ($WMT) to the Gap ($GPS) to Jessica Alba's The Honest Company have all said rising costs may lead to higher prices.
But if companies indicate they'll be able to absorb these costs, Browne said, "that'll help the market hopefully find some footing."
For full interview [click here](https://cheddar.com/videos/market-week-in-review-2).
You'll just have to wait for interest rates (and prices) to go down. Plus, this deal's a steel, the big carmaker wedding is off, and bribery is back, baby!
It’s a chicken-and-egg problem: Restaurants are struggling with record-high U.S. egg prices, but their omelets, scrambles and huevos rancheros may be part of the problem. Breakfast is booming at U.S. eateries. First Watch, a restaurant chain that serves breakfast, brunch and lunch, nearly quadrupled its locations over the past decade to 570. Fast-food chains like Starbucks and Wendy's added more egg-filled breakfast items. In normal times, egg producers could meet the demand. But a bird flu outbreak that has forced them to slaughter their flocks is making supplies scarcer and pushing up prices. Some restaurants like Waffle House have added a surcharge to offset their costs.
William Falcon, CEO and Founder of Lightning AI, discusses the ongoing feud between Elon Musk and Sam Altman, and how everyday people can use AI in their lives.
U.S. tariffs on steel and aluminum “will not go unanswered,” European Union chief Ursula von der Leyen vowed on Tuesday, adding that they will trigger toug
The Trump administration has ordered the Consumer Financial Protection Bureau to stop nearly all its work, effectively shutting down the agency that was created to protect consumers after the 2008 financial crisis and subprime mortgage-lending scandal. Russell Vought is the newly installed director of the Office of Management and Budget. Vought directed the CFPB in a Saturday night email to stop work on proposed rules, to suspend the effective dates on any rules that were finalized but not yet effective, and to stop investigative work and not begin any new investigations. The agency has been a target of conservatives since President Barack Obama created it following the 2007-2008 financial crisis.
Jeff Benedict, author of 'The Dynasty,' weighs in on the Kansas City Chiefs being the next big dynasty, who he thinks will win Super Bowl LIX and more. Watch!
