Volatility is often seen as a constituent of a healthy stock market. However, sometimes high volatility can be painful for investors. The stock market was volatile yesterday and has been since the beginning of the year. Despite trading higher earlier in the day, the S&P 500 fell 0.3%, and the Nasdaq composite ended lower at 14,015.67, down 82.34 points. At the same time, the Dow Jones Industrial Average finished just 1.39 points higher.
The stock market has been experiencing wild price swings due to the investors’ concerns over rising inflation, geopolitical tensions between the U.S. and Russia over Ukraine, and the Fed’s signal that it will likely raise interest rates multiple times this year. According to BofA Securities’ U.S. head of equity and quantitative research, Savita Subramanian, “It’s going to be a year where we are shocked by the volatility.” Her price target for the S&P 500 is 4,600. “Between today and year-end, we’re going to hit that target multiple times, and we’re going to see some big swings from the market,” she predicted.
