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).
Stocks drifted ahead of reports that could offer clues on questions that have kept Wall Street at a standstill, including on where the economy and corporate profits are heading.
Aidan McClean, co-founder and CEO of UFODRIVE, joined Cheddar News to discuss how his company plans to shake up the car rental market with a digital experience. "There are no lines, there are no paperwork, there is no key collection ... no pushy insurance or pushy fuel options," he said. "You simply arrive for your electric car, use your smartphone and drive away."
Nearly half of Americans report having to side hustle to make ends meet, according to a survey from LendingTree. Jane Oates, president of WorkingNation, joined Cheddar News to discuss the state of play as families are having a difficult time with inflation and high-interest rates.
Melissa Armo, founder and owner of The Stock Swoosh, joined Cheddar News to discuss this week's markets which were little changed in trading as investors digested the latest corporate earnings results as concerns over a coming recession grow.
Peter Krull, a partner and director of sustainable investing at Prime Capital Investment Advisors company Earth Equity Advisors, joined Cheddar News to give some tips on green investments.
Investment in space was down 53% over the first three months of the year, according to a report from investment fund Space Capital. Chad Anderson, founder and managing partners of Space Capital, joined Cheddar News to discuss the funding downturn that's hit the lowest level in 14 quarters for the space industry.
The Week's Top Stories is a guided tour through the biggest market stories of the week, from winning stocks to brutal dips to the facts and forecasts generating buzz on Wall Street.
