The market had a free pass for a while that allowed investors to rebuild equity exposure without needing much more than "less bad" news and revived credit markets.The gut check also came as the best-ever 11-week rally was about due to backslide or at least flatten out.
This free pass allowed investors to rebuild equity exposure rapidly from depressed levels without needing much more than "less bad" news and revived credit markets. There has not yet been a reported surge in infections two weeks after mass protests began in many U.S. cities, which is certainly a plus. But the persistent rise in cases forced investors to ask tougher questions about how forceful the travel and consumer comeback will be this summer and into the fall.
Still, Wall Street can reliably be trusted to begin fixating on "election risks" every fourth summer, so perhaps they will act as a restraint or a prompt for some volatility in the months to come.Of course, none of these overhanging issues – Covid, fiscal flux and the campaign - are in themselves new or particularly surprising.
There's no doubt the rapid retreat and even more extreme swings in subsegments of the market – the Russell 100 Value index fell 10% Tuesday to Thursday – might have touched off a choppier market phase as the news flow seems a bit less "heads I win, tails you lose" for the bulls.
Market manipulation obviously. Shaking the tree and see what falls out. Trying to pluck off young investors who get scared.
Cnbc has been playing the 'there is no reason for the market to go up' card the whole rally. It's old. Headline tomorrow 'futures up on vaccine progress '
Why did the market get a 'free pass' in the first place?
Yo, sup CNBC, 24+ hours without a word about joe Biden’s MLK remarks. What’s the deal? Going to ignore it because it’s not trump? Btw, if you’re going to hide from the news of a presidential candidate saying something moronic don’t pretend you’re for Juneteenth in 6 days.
it shocks me this is the quality of Journalism we’re expected to. The future on Financial media is social. The bloated saltiest on CNBC contributors, and you can’t hire more researchers? so weak retirecnbc
The news isn't bad ... the news networks are bad ... every day with the fake fear porn that 'cases are spiking'. Cases are a direct correlation to tests. The amount of people testing positive isn't going up. Deaths aren't increasing. It's pure nonsense.
The news and the talking heads are the problem. Put good companies on television, not Markets and Turmoil and pessimists, when option delta is up. Always, times up perfectly with analysts you work so closely with...