Volatility Eases on Wall Street After Latest Market Rout, But Here's Why Strategists Remain Cautious
A sense of calm has returned to Wall Street after a volatile week but many strategists warn that volatility may not be over yet and could continue through the fall. Much of the recent volatility was driven by the unwinding of the yen carry trade where investors borrow at low rates in Japan and invest elsewhere. Strategists say thinner trading activity over the summer months and uncertainty around Fed policy and the elections could also lead to continued volatility. Economic data on inflation and jobs will determine if recession risks rise or fall.
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00:00It's Benzinga, and here's what's on the block.
00:02A sense of calm has returned to Wall Street after a volatile week, but many strategists
00:07warn that volatility may not be over yet and could continue through the fall.
00:11Much of the recent volatility was driven by the unwinding of the yen carry trade, where
00:14investors borrow at low rates in Japan and invest elsewhere.
00:19Strategists say thinner trading activity over the summer months and uncertainty around Fed
00:22policy and the elections could also lead to continued volatility.
00:27Economic data on inflation and jobs will be key in determining if recession risks
00:31rise or fall.
00:32For all things money, visit Benzinga.com.