The U.S. stock markets experienced extreme volatility today. The Dow Jones Industrial Average fell by 91.99 points, losing 0.2% after a seven-day winning streak in the generally stronger market. Dow futures proved a little more resilient, climbing 27 points, or 0.06%. They went on to gain 36 more points, climbing 0.08% per month. On the other hand, S&P 500 futures were enjoying slight moves of 0.08% and 0.09%, even though the index was already down by 0.4%.
The Nasdaq Composite fell 0.7%. At the same time, Nasdaq 100 futures rose by 0.11% on two consecutive days. Traders are getting more antsy as the government shutdown heads into its second week. These fears are beginning to affect their feelings deeply.
Market experts noted a significant decline in the value of Oracle’s stock. This drop led some to question the durability of the AI boom, instilling fear across investors. On top of that, big swings in many individual stocks added to the overall market volatility. Fair Isaac stocks fell as much as 4% after Equifax said it would allow less expensive mortgage score rates. Few companies in the era of SPACs have enjoyed such a dramatic swing in their stock performance as Joby Aviation. Its shares tanked more than 9% today after the air taxi developer disclosed plans to sell shares totaling $500 million.
This age of unpredictability has caused many market actors to be overly conservative. Liz Thomas expressed this sentiment, stating,
“We had a long rally. Everything feels extended. It feels exciting. It feels euphoric.” – Liz Thomas.
As the effects of the government shutdown continue to unfold, alongside various corporate developments, traders remain vigilant to shifts in market dynamics. It’s this interplay of these factors that makes it especially complicated for anyone trying to navigate today’s economic landscape.