Stock market 2018: Expect Dow volatility as trade war

If you get rattled when the stock market behaves erratically and the Dow careens — up and down hundreds of points in a single day — brace yourself.To get more stock market, you can visit shine news official website.

The era of calm markets and small price swings is over. The new normal on Wall Street is all about wild fluctuations, mammoth moves like the Dow Jones industrial average's 1,000-point drops earlier this year, and rapid-fire price reversals that can shift the mood of the market from optimism to pessimism in a matter of minutes — and sometime seconds.

Three of the Dow's biggest daily point drops in its 122-year history, including its 1,175-point record fall on Feb. 5, have occurred this year. And its wild ride Friday, when it plunged 767 points before ending the day down 572 points, illustrates a return to volatility.

There have already been 27 trading days in 2018 on which the Standard & Poor's 500 stock index has closed up or down by more than 1%, compared to just eight days in all of last year, according to S&P Dow Jones Indices. If the current pace of 1% swings persists through year-end, it would put the large-company stock index on track for its most volatile year since the financial crisis.

The roller coaster that has investors on edge has been powered by a barrage of unsettling headlines: The war of words between the U.S. and China over tariffs. A series of market-moving tweets from President Trump. A troubling stream of news related to Facebook and its data-privacy crisis. Setbacks in the self-driving car business. Ongoing worries about the threat from rising interest rates and inflation.

The "market environment has changed," and investors are reassessing the new risks, Michael Farr, president of Washington, D.C.-money management firm Farr, Miller & Washington, told clients in a report titled "The New Normal."

"With all the uncertainty," he wrote, "markets will react and they will have larger price moves."

In an attempt to soothe investors' frayed nerves, Wall Street pros insist last year's quiet rally that pushed the Dow up 25% was the anomaly, and that the more violent price action early this year is more normal market behavior.

"Market turmoil is an innate element of being an investor," says Jon Swaney, co-head of strategic asset allocation at New York Life Investment Management. "It feels raw at the moment and it is not entirely pleasant. But in the near term, investors have to accept the fact that their account balance will bounce around more than it did last year."

E-mail me when people leave their comments –

You need to be a member of The Brooklynne Networks to add comments!

Join The Brooklynne Networks

Brooklynne Brands & Services

Brands

TicketENVY- Find & Buy Sold out Concert, Sports and Theater Tickets Worldwide

Bundlestacks- Check out all our hair Bundles

SportsBrook- Fully Licensed Online Urban Sports Betting and Gaming Platform (Coming Soon)

KaratCity- Helping to provide regular people save and spend GOLD

VerticalRents- Helping Landlords mange and engage their Tenants Easier

MyTeleMedics- Get your Personal and Family Remote Healthcare Services NOW

SeksCity Toys- Adult Pleasure Aids and Supplies (Must Be 18+)

Services

Brooklynne Info Weekly- News nd Events of featured Brooklyn Entrepreneurs and Community Related Issues

Brooklynne Style Daily- Brooklyn & NYC Based Style and Fashion News

Brooklynne Shop- Exclusive Graphic Designs from Featured Artists and Partners

Brooklynne TV- Watch Underground Indie Videos Podcasts & Live Events

Brooklynne Hookups-  Find Urban Dates and HookUps

Local Business Services

The Brooklynne Agency -Full Service Digital Marketing and Development Marketplace

Brooklynne Social - Free Social Media Marketing Mgmt Platform for Brands

The Brooklynne Agency - Office

Phetch.Co Ordering Mgmt

Xpurts by Phetch - Have REMOTE private conferences and meetings with Professional Experts

Go Phetch - Multi Cuisine Order and Delivery Mgmt Facilites and Marketplace for local Ethnic Food Providers in Brooklyn (Coming to NYC HOU DMV  & ATL)

Phetch IT- Order for Delivery Food Groceries Alcohol & Laundry from your favorite Independent merchants in your Area(Coming to NYC HOU DMV and ATL)

Phetch Charg- Start an Electric Vehicle Charging Station at yur Urban locations Tdday

Jesus Bless Me Crowdfunding Mgmt

JesusBless Me - A Full Service Crowdfunding Platform for the City of Churches and all Community Groups and Organizatios that need to raise funds