Traders are feeling a sense of déjà vu these days. Before the election, the markets experienced a distinct pattern of up and down days. The election and the enthusiasm behind Trump’s pro-business victory managed to send equities higher. However, these days, questions about Trump’s ability to get things done has the market going back to its old ways. This was evident in this week’s continued up and down movement. Check out last week’s Market Wrap here.
Stocks this week continued to ebb and flow based on the political situation as well as moderately positive economic data. Several key metrics, such as labor and consumer data, came in better than expected. However, a variety of measures and the fallout from last week’s military strike in Syria dampened expectations.
Also causing a fair bit of volatility is the fact that earnings season is once again upon us. A variety of big name stocks have already begun reporting and, as expected, guidance/revenue numbers have been mixed.
All in all, this past week has only underscored the renewed trend of sideways movements for stocks.