Question

In: Finance

What did you observe to be the major causes for the volatile week in stock trading...

What did you observe to be the major causes for the volatile week in stock trading this past week?  

Solutions

Expert Solution

Major causes for the volatile week in stock trading this past week were as follows-

A. major causes of volatility in trading was the presidential election Expectations which are getting discounted into the market slowly

B. There was an iPhone 12 announcement and it had led to volatile movement in share prices of Apple which is a major component of major indexes.

C.there were also reports with development on trade war with China which impacted the overall volatility of the stock markets.

D. the monetary policy assurance by the Federal Reserve chairman that they are not going to increase the interest rates are also leading to to sense of security but it is also causing volatility in the market Due to certain expectations

E . the volatility in the market can also be attributed to the factors like change in the global commodity prices and there has been a change in the political environnement all across the world.


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