Markets Report: the long awaited pullback
Markets take the stairs up and elevator down.
Markets take the stairs up and elevator down. After months of relentless rallying, stocks finally started to pullback on renewed tariff threats. The herd swings manically both ways: these traders either believe that the rally can’t end, or that the first pullback is the sign of a “1987 Black Monday crash”.
As is often the case, the data calls for less extreme scenarios. It is not common for the S&P 500 to make a new all-time high, then immediately meltdown the next day (as it did on Friday). These are typically news-driven events that can lead to more short term volatility, but longer term is followed by more gains.
