Betty Liu, Executive Vice Chairman for NYSE Group, explains: What do you make of this recent market volatility?
So, I mentioned before that markets hate uncertainty and we are in unprecedented times right now. Just to give you a little bit of some perspective on just how volatile the markets have been, so, on March 9th, we had, the first time ever, the modern market wide circuit breaker triggered. Now, that has been triggered four times from March 9th to March 18th. On March 16th, the Dow closed down almost 3000 points. That was the steepest drop, 13 percent, since Black Monday in 1987. And also, just one more stat for you, the S&P has closed up or down 4 percent for eight consecutive trading sessions.
What would it take to reduce the market volatility?
So, unsurprisingly, an end to the global pandemic would certainly limit, if not eliminate, the market volatility. The stimulus package also could dampen volatility, but there's still a lot of uncertainty around that. And it's really still uncertain how this global pandemic is going to affect the global economy. So, there's still a lot of questions out there. And with those questions and uncertainty, we're likely going to see continued volatility in the markets.