Can the markets bounce back after a breather?


Investors got a bit of a breather when the markets were closed on Wednesday. But stock trading will be back Thursday — along with uncertainty.

The Dow plunged nearly 800 points on Tuesday. The selling erased nearly $800 billion from the S&P 500’s market value, according to S&P Dow Jones Indices.

In a healthy bull market, the selloff would be just a blip — stocks would typically bounce back after a huge sell-off. But with so much volatility in the markets, Tuesday’s losses could be a sign of more to come.

Trade continues to sour investors’ spirits. Despite a recent truce, the US-China trade war is not over. The tariffs already put in place remain. And new tariffs could be implemented if the two sides fail to make progress.
And investors have grown very worried about fluctuations in the bond market. The gap between short and long-term

Treasury rates has narrowed significantly this week. Before almost every recession, the yield curve has inverted, meaning short-term rates are higher than long-term ones.

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