Media reports described the first full week of stock trading in August 2024 as a “wild week” filled with unexpected dips and a shaky recovery towards Friday 9 August 2024.
Tumultuous Week In Stock Trading Ends On Steadier Note
The S&P 500 experienced its worst Monday and best Thursday since 2022 on 5 and 8 August 2024 respectively, typifying the seesawing markets. Based on CNBC data, the 10-year treasury yield plunged below the 3.7% mark on Monday and ended the week hovering around 4%.
In another unexpected Monday market surprise, the Chicago Board Options Exchange (CBOE) Index, which is the so-called Wall Street ‘fear gauge’, jumped to 65, the index’s highest since 2020. Despite this sudden spike, it ended the week lower.
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The S&P 500 steadied its shaky performance as the week went on and closed the week with less than a 0.1% drop. CNBC cited Tim Hayes, chief global investment strategist at Ned Davis Research, who noted:
Currently with inflation under control globally and recession evidence in short supply, the recent volatility has produced correction weakness but lacks the characteristics of a bear market.
Analysts pointed out that two-thirds of the shares on the S&P 500 traded above their long-term average, which most experts regard as a positive sign despite the tumultuous movements. Economists also spotlighted Japan’s market climate, where the yen and Japanese stocks battled high winds but remained resilient. The Nikkei 225 Index ended Friday 9 August 2024 down by less than 3%.
Others, however, red-flagged the global markets and said that this hiccup is a sign that the stocks fanning the flames of a bullish market are running out of steam.
