“Most of the big items that have driven the market over the past two months are done,” said Tom Martin, senior portfolio manager at Globalt. “The market is guessing there will be some sort of trade deal that will end the larger hostilities.”
“The news has people waiting; that’s what you’re seeing in the averages over the last several days,” Martin added.
Federal Reserve Chairman Jerome Powell told a Senate committee last week that the economy is on solid footing, but potential dangers are looming, such as the year-end volatility experienced in 2018. Powell, however, assured that the central bank will respond accordingly should such dangers present themselves.
“While we view current economic conditions as healthy and the economic outlook as favorable, over the past few months we have seen some crosscurrents and conflicting signals,” Powell said in his prepared remarks to the Senate Committee on Banking, Housing and Urban Affairs. “Financial markets became more volatile toward year-end, and financial conditions are now less supportive of growth than they were earlier last year.”
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