By the end of the week, however, the markets had almost fully recovered. Days afterits worst trading day since 2022, the S&P 500 rallied for its best trading session dating back to that same year. For the week, the S&P 500 ended nearly flat, inching downward 0.05%.
The heightened worry about an economic cooldown coincided with interest rate hikes imposed by Japan's central bank. Those rising rates prompted an unwinding of a so-called "carry trade" in which investors borrowed Japanese yen at low interest rates and used it to purchase assets, including U.S. stocks.
"People saw a buying opportunity and stepped in," Subrahmanyam said, noting that markets often recover quickly from a downturn. "The entire episode was simply a panic followed by a correction." In turn, some observers believed that stocks had become overpriced. While the prices reflected robust corporate profits, they also had soared on account of enthusiasm about artificial intelligence and optimism about the chances of an economic "The perception of overpriced stocks left the market vulnerable to a fit of bad news that could exacerbate those jitters, the experts added.
France Dernières Nouvelles, France Actualités
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