Why the Stock Market Is Dropping and How It Could Bounce Back

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Disappointment over tech earnings, high bond yields, and concern about the outlook for the price of oil are all hitting stocks.

Halloween is still a few days away, but many investors may have already gotten a fright from the market this week. The question is how scary the future looks.

Solita Marcelli, UBS Global’s chief investment officer for the Americas, wrote that the “average one-day move for the Magnificent Seven was -3.4% on Wednesday.” Disappointments about tech earnings have captured the headlines, she said, even though third-quarter results at some 80% of companies have exceeded expectations.

Finally, while the House of Representatives has a new speaker at long last, it wasn’t the kind of victory to crow about.

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