Thursday's Market Minute: Roller Coaster

The benchmark S&P 500 has moved over 1% intraday for 20 out of the last 21 days. The only exception during the last three weeks was on Tues., Aug. 20, which saw an intraday move of only 0.8%. Eight out of the last 21 sessions have seen daily moves of more than 2%, with three days registering over 3%. What does this mean for markets as we head into historically volatile September?

Most likely, more days of increased volatility but possibly stocks may get a “we are tired” sense and react less to headline news. Earnings season also wraps up for the most part this week, so less corporate volatility is expected into September. Economic data picks up over the next several weeks along with a key FOMC meeting mid-September, which will most likely increase uncertainty.

The volatility roller coaster we have seen throughout August may extend into next month, but it could also settle down if we get positive trade commentary and investors become more optimistic heading into the key fourth quarter – which includes the holiday shopping season. Although markets may settle down after the recent swings, you should be prepared for additional out-sized moves in the near-term…and try to enjoy the ride!

Information from TDA is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade.

Image Sourced from Pixabay