The negative close on Wednesday and the wild session on Tuesday began after indexes were put under pressure on the back of a rise in the 10-year Treasury yield sparked renewed concerns which triggered the sell-off.
US stocks began to stutter again on Wednesday after an early surge, in a sign that investors are still spooked by the market’s recent retreat and wary more fallout is to come.
Investors remain on edge over the volatile trading and they remain concerned that earnings are set to stir up sentiment during Thursday’s session.
Stephen Massocca, senior vice president at Wedbush Securities in San Francisco, said: “Obviously there’s a lot of concerned and nervous people.
“You might have had day traders trying to get out at the end of the day. Who knows what tomorrow brings,”
While Wednesday’s trading lacked the wild swings of the prior two sessions, the Dow industrials moved in a roughly 500-point range, more than three times the average daily swing over the past year.
Alan Lancz, president of Alan B. Lancz & Associates, an investment advisory firm in Toledo, Ohio said: “There are going to be people that are going to be selling into any kind of strength and then you are going to have some value-conscious investors taking advantage of these multiple 100-point drops.
”Now that everybody is on edge, you’re going to see the volatility swing in both directions.”
Jordan Hiscott, chief trader at ayondo markets told Express.co.uk yesterday, that the markets are treading carefully.
He said: “While the intraday swings and volatility on Wall Street have been disproportionately large, I was surprised at the 1600 points fall earlier in the week.
“But for an idea of basis, the swings represent a move of just over 4.5 percent lower, whilst the 1987 Wall Street capitulation was 23 percent.
“In addition, Wall Street is now at the same level from November 2017.
“Certainly, by any standards, it’s not a bear market and not technically counted as a correction, which is usually measured as a 10 percent fall from the high.
“Going forward I have slightly more trepidation for equities. The high valued nature of stocks and a new element of inflation has brought me to question whether the uptrend in equities can continue as the same speed and trajectory for the beginning of 2018.”