Earlier this year, equity analysts started reaching for the Motrin again as market volatility came back to town. After a prolonged period of growth, U.S. stocks began charting a new path of ups and downs.
Scores of commentators observed the change in market winds. Even Jack Bogle, founder of Vanguard, said the newfound market swings were unlike anything he had ever seen in his 60-plus years of investing. "I have never seen a market this volatile to this extent in my career," he said in an appearance on the CNBC show "Power Lunch."
And now, this volatility trend seems to have continued. Last week, on October 10, the Dow Jones fell more than 800 points. It was the largest drop since February 2018. Meanwhile, the S&P 500 declined 3.3% and the Nasdaq fell 4%, according to CNBC reporter Fred Imbert.
Then on Wednesday, October 17, the market took a slight stumble as the Federal Reserve released the minutes from its September meeting. A month earlier, Fed board members approved a quarter-point hike to the central bank’s benchmark rate, setting a new rate range of 2% to 2.25%.
The minutes indicate that future rate hikes may be ahead. According to meeting records, Fed officials believe that "further gradual increases in the target range for the federal funds rate would be most likely consistent with a sustained economic expansion, strong labor market conditions, and inflation near 2 percent over the medium term."
