What the market gives, it can take away. That’s been the common theme over the last few weeks as traders continue to digest every news/data point. This week their focus was on trade. Over the weekend, President Trump met with Chinese officials during the G20 summit to discuss trade. On the surface, that meeting went well. However, comments made by Trump indicated that it did not.
As a result, the market resumed its whipsaw pattern. And with a shortened trading week, investors fled for the hills.
Helping the flight to cash and bonds was an already inverted yield curve and slowly deteriorating economic data. Several key measures across manufacturing and employment showed less-than-bullish growth. And with many firms reporting cautious guidance this week, selling pressures intensified.
With that, investors spent much of the week running for the hills and stocks resumed their slide lower.
Be sure to check out our previous week’s Wrap here, when the Powell Put was put in place.
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