Breaking News: Politics Driving Volatility in Bull Market, Evercore ISI Analysts Say
In a recent report, Evercore ISI analysts highlighted politics as a key factor behind the increased volatility in the current bull market. The volatility spikes observed in 2024, including the notable "Supervol Spike" on August 5, have been closely linked to political developments and uncertainties.
The report pointed out that the narrative of the Federal Reserve being willing to take necessary actions played a crucial role in averting the recent spike. It is expected that Fed Chair Jerome Powell will emphasize this narrative at the upcoming Jackson Hole conference, aiming to guide the economy towards a "Soft Landing."
Upcoming events such as Vice President Harris's speech at the Democratic National Convention, presidential debates, and the looming U.S. election in November are also anticipated to contribute to market volatility.
Moreover, Evercore analysts emphasized that factors beyond politics are also influencing volatility in the ongoing bull market. Events like the BLS Payrolls benchmark revision, Nvidia earnings, FOMC meetings, and various economic reports could all have significant impacts.
Following a slight dip in U.S. stocks on Tuesday, as investors await the Jackson Hole Economic Symposium, Evercore analysts believe that the path for the market to reach 6,000 is still viable but susceptible to further volatility surges, especially in a year with tight Congressional control like 2024.
In conclusion, it is crucial for investors to stay informed about political developments and economic indicators that could impact market volatility. By understanding these factors, individuals can make more informed decisions about their investments and financial well-being.