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).
International Master Alice Lee defeated grandmaster Irina Krush to win the American Cup – becoming one of the best women players in the world in the process – but she’s not stopping there.
You can track your sleep habits or heart rate, but how about your brain? Neurable's MW75-Neuro headphones turn your focus and productivity into data you can use to avoid burnout – here's how they do it.
Whether it’s a deepfake video of actor Tom Cruise discovering gum in a lollipop or President Joe Biden discouraging people from voting via telephone, you’ve likely come across a deepfake video, photo or audio recording.
Tensions in the South China Sea, Apple moving to India, and banning TikTok? The podcast ‘Face Off: The U.S. Versus China’ helps explain how we got here.
Cust2Mate is a leading innovator in retail technology, aiming to revolutionize the shopping experience. By implementing smart cart technology, the tech company addresses the issue of theft while enhancing the shopper's journey.
The Biden administration has unveiled a plan, Plan B, to address the student loan debt crisis. It offers to cancel up to $20,000 in interest for borrowers enrolled in income-driven repayment plans. This proposal aims to reset balances for those facing growing debt due to unpaid interest, benefiting low—and middle-income borrowers. An estimated 25 million borrowers are eligible for some form of interest forgiveness.
As we head into the second quarter, there’s an argument in favor of buying Boeing stock. Why? As one expert says, ‘there’s nowhere else to get planes.’
