Friends
It was just another stunning day of volatility as the Dow had a more than 600 point trading range. At midday stocks had a nice leg up, only to reverse and collapse as the afternoon wore on. The causes of today’s action. Well, tech was the most damaged sector as firms involved with Artificial Intelligence (AI) led the way to the downside. In addition, concerns about an anemic first quarter GDP (the 10 year Treasury note fell below 2.80% in yield) and the continuing “trade wars” worries also made the rounds on the business news broadcasts.
By the close, the Dow Jones Industrial Average was down 344 points to trade at 23,857. The S&P 500 was down 45 points to finish the day at 2,612. Gold was down $10 to trade at $1,344 per ounce, while oil was down $.81 to trade at $64.74 per barrel WTI. Led by tech, the Nasdaq suffered the most damage today.
The market’s previous leaders have sustained serious damage over the past six to eight weeks. Rotation can be healthy and a needed ingredient for a continuing bull market, but instead of rotation recent market action has more of a feel of liquidation- not really much rotation. It is difficult to get comfortable these days, whether you’re a bull or a bear. It will be interesting to see how this volatility resolves itself over time. Stay tuned.
Have a nice evening everyone.
