The stock market edged lower Friday morning, capping off a week of wild trading. The Dow fell 130 points by mid-morning. The S&P 500 was down 0.5% and Nasdaq was 0.7% lower. They had all traded higher in the first hour.
In a quiet week for news, market analysts say extreme volatility has been driven by thin trading volume and stocks hitting technical limits that rapidly drive sentiment from fear to greed and back again.
“As the market continues to worry about a recession, the implications of a trade war with China, and unpredictable and adverse political decision-making from the White House, we are going to continue to see volatility,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance.
“The rough market has worn on the psyches of investors,” said Scott Wren, senior global equities strategist for Wells Fargo, in a note to clients. “This year turned quickly from meeting our expectations for the S&P 500 to falling well short of those expectations over the course of a few short weeks.”