Chart of the Week: Market Responsiveness to Key Headlines

Market Responsiveness to Key Headlines April 2018

Heavy doses of volatility have been par for the course in 2018. With the U.S. economy remaining on solid ground, the uptick in volatility has been led by concerns surrounding a potential trade war, not by a change in underlying fundamentals. The chart above shows the price movement of the S&P 500, along with several trade related and other key political headlines. While markets have remained volatile over the last few weeks, you can see that recent swings have not been as pronounced as the swings that we witnessed earlier this year. This may signal that the market is beginning to discount some of the trade-related headlines, opting to wait and see how the situation plays out instead of making knee-jerk reactions.