Investors needed the long weekend to recoup after last week’s terrible run. Unfortunately, the shortened trading week due to the Memorial Day holiday didn’t provide much comfort for investors. Losses continued as more trade-induced woes became apparent. The trade war was considered all but done just a few weeks ago; however, the U.S. decided to back away from the table, and those concerns have continued to reverberate with traders.
Elsewhere, data and limited earnings painted a mixed picture on the economy. While consumers seemed bullish, several other data points showed that the economy’s strength was slipping. Manufacturing and unemployment figures came in more bearish than expected.
The combination of poor data, limited earnings and the trade situation caused the markets to dip and the bond markets to swoon. In that, the so-called yield curve once again became inverted. This caused investors to stress further that a recession and the beginning of the bear market was at hand.
All in all, the shortened week was a volatile one that spurred more heavy losses for investors.
Be sure to check out our previous Wrap here, when trade was still the major driver.
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