Markets cratered this week, heading into correction territory, and then bounced right back.1 And then continued bucking and kicking the next day. Weird, right?
Not really. These things happen pretty regularly when investors get jittery. Let’s talk about what’s going on. (Scroll to the end if you just want my soothing takeaways.)
What led to the giant selloff?
A few things: Fears around the Federal Reserve raising interest rates and what rapidly removing support could do to markets and the economy. (2) Inflation worries (it's at a 40-year high). (3) Tech earnings. (4) A potential hot war in Ukraine. (5)
Bottom line: markets are being driven by fear, anxiety, and uncertainty.