Too Much Of A Good Thing
Mati Greenspan | Mar 22, 2017 05:55AM ET
So, yesterday the stock market did something funny, something it hasn't done in a while: it went down.
The S&P 500 fell more than 1% yesterday for the first time in 110 trading days.
It seems all that focus on politics ended like a child that ate too much chocolate, with a big tummy ache.
Today's Highlights
Stocks Correct
Search for Safety
New Zealand Rates
Please note: All data, figures and graphs are valid as of March 22nd. All trading carries risk. Only risk capital you can afford to lose.
Market Highlights
Who says you can't have too much of a good thing?
Donald Trump's pro-business policies have been really great for the stock market so far but yesterday investors started to wonder, perhaps for the first time, if the USA isn't about to overdose on under-regulation and protectionism.
Interest rates in the US are now 0.25% higher and expected to go up pretty quickly from 1% to 3% over the next couple of years.
In the meantime, Washington seems set to repeal Obamacare but the replace factor still seems a bit hazy on the details. This is quickly turning into a political battle that could go on for weeks or even months without any clear solution.
If that's not enough, the FBI is now officially looking into Trump's Russia connection. Dun dun dun.
Here's the Dow Jones at the top...
The sudden drop had some investors spooked but if that's not enough, oil also took a dip and is now trading below $48 a barrel once again.
It seems we're now in a distinct 'safe haven' trading mode. Gold rose just shy of $1250 an ounce and silver surged as well.
The currency markets have confirmed this 'risk off' sentiment as well with the Japanese yen and Swiss franc gaining this morning.
Ether Calmed
While all of the noise in the stocks is playing out, the most popular market in eToro has calmed down a bit. Ethereum has not seen very much drama over the past 48 hours and is $42 a coin.
Get The News You Want
This remains an extremely volatile market and there's no telling what could set it off but for now, at least we're seeing many of our traders shifting focus back to the traditional markets as they see opportunities in the new found volatility.
What's next?
The economic calendar is pretty empty over the next few days with the exception of the RBNZ rate decision later tonight. Even here, however, there is no change expected and not even a press conference to stir the pot.
The crude oil inventories could prove to be important depending on the outcome. Oil is still a very big investor focus and any further dips could be dangerous.
More importantly though are updates from the new White House. We're now 60 days into the Trump administration and the jury is still out on what the long-term effects may be.
Disclosure: This content is for information and educational purposes only and should not be considered investment advice or an investment recommendation. Past performance is not an indication of future results. All trading carries risk. Only risk capital you're prepared to lose.
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.