Stocks have continued to ebb and flow over the last few weeks as investors try to digest the overall fate of the global economy. Growth appears to be slowing, and yet, we still have received pockets of bullish news. This has created a very interesting and volatile environment for traders. This week, the bears seemed to win out as too many concerns clipped enthusiasm for stocks. Part of that comes courtesy of the Fed.
On one hand, investors cheered this week’s Fed decision to keep rates low – potentially for the rest of the year. However, the reasons why the Fed stopped on rates gave investors plenty of pause. Just how bad is the economy doing? While, add in a still uncertain trade picture and less than bullish data and investors continue to play tug of war with shares. We did see gains – but those gains were kept in check.
And with the so-called earnings season now wrapping up and dwindling to a trickle, there wasn’t much positive news on the corporate front this week to help spur stocks higher and overcome the growth concerns. Nor were there any major M&A or merger announcements.
With that, issues with growth proved too much to bare and stocks spent much of the week trending lower.
Be sure to check out our previous Wrap here, when stocks headed lower on no trade news.