September 20, 2016
April Jobs Report Shows Slower Pace of Growth

After Summer Slumber, Volatility is Back

WEEKLY UPDATE – SEPTEMBER 19, 2016 This article is about Volatility is Back. After Summer Slumber, Volatility is Back, Volatility picked up last week due to pressures from lower oil prices and speculation about the timing of the Federal Reserve’s next rate hike. This summer has been historically calm for markets, leading markets to trade without big intraday gains or losses.[1] However, Friday broke that streak, possibly ushering in a period of greater volatility as uncertainty looms. For the week, the S&P 500 gained 0.53%, the Dow grew 0.21%, the NASDAQ added 2.31%, but the MSCI EAFE dropped 2.49%.[2] After Summer Slumber, Volatility is Back The market is facing a dilemma based on mixed information and an uncertain political landscape. On the one hand, economic data is neither weak nor strong enough to make the choice to raise interest rates easy for policymakers. On the other hand, the unpredictable nature of the presidential race contributes to market volatility. Though Fed economists have repeatedly stated their intentions to raise rates soon, no one is certain about the timing of this hike. The Federal Reserve’s Open Market Committee will meet this week to decide whether or not to raise interest rates for the […]