The New (Ab)Normal
Stocks endured significant volatility last week but showed some resilience Wednesday, August 7, when the S&P 500 Index dropped as much as 2% intraday before rallying back late to close slightly positive. Stocks ended the week near flat, putting the S&P 500 about 3% away from its record high.
Escalating trade tensions drove the volatility. In response to President Trump’s latest tariff threat, the Chinese central bank allowed its currency (the yuan) to weaken below the psychologically important 7 per dollar level considered a line in the sand.
Unfortunately, both sides may inflict m... Read more