STOCKS: Bounce Back Like a House

By Staff Reporters

SPONSOR: http://www.MarcinkoAssociates.com

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Much like a springy inflatable structure often resembling a four-sided building and used by children for jumping for sport and fun, stocks staged a much-needed bounce-house back week on hopes that the trade war would de-escalate, with the S&P 500 climbing for four straight days to close 4.6% higher.

Whether the rally continues this week may depend on the Magnificent Seven earnings on tap—each of those Big Tech stocks has fallen at least 6.5% this year, shedding a combined $2.5 trillion in market value, per the Wall Street Journal.

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VIX: Stock Market Fear Gauge Update

VOLATILITY INDEX

By Staff Reporters

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DEFINITION: https://medicalexecutivepost.com/2024/05/30/what-up-vix/

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UPDATE

The VIX soared to 60.13 last Monday before plummeting all the way to 33.76 on Wednesday, the day after the president paused tariffs. But while the VIX has since settled down a bit, investor fear is still high. The VIX closed above 30 for 10 straight trading sessions and the last time that happened was during the bear market back in October 2022, according to MarketWatch—not exactly a comforting comparison.

Then again, just because fear skyrocketed last week doesn’t mean the markets will tank in turn. “Since 1997, there have been 11 times the VIX spiked above 45—and 10 out of 11 times, the S&P 500 was higher four months later by an average of +6.4%,” noted Austin Hankowitz in the latest edition of the Rich Habits newsletter.

Finally, the VIX closed above 30 Thursady as tariff talk and monetary policy pivots keep investors on their toes. But while worries might keep investors on the sidelines, some on Wall Street are taking this opportunity to be greedy while others are fearful.

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UNITEDHEALTH: Stock Dives

By Staff Reporters

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UnitedHealth stock nosedived 20% in morning trading, falling by $116 per share from Wednesday’s $585 close to $469. The Minnesota-based firm is on track for its steepest daily loss since Aug. 6, 1998.

The losses came after UnitedHealth’s first-quarter financial report was worse than analysts expected across each of the three major quarterly yardsticks: revenue, earnings per share and future earnings outlook.

Furthermore, after the opening bell, the Dow Jones Industrial Average tumbled 1.3%, or around 500 points. The S&P 500 moved up 0.4%, while the tech-heavy NASDAQ composite gained 0.5%.

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US STOCKS: Market Update

By Staff Reporters

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US Markets

After one of the most volatile weeks in Wall Street history, the S&P 500 closed 5.7% higher for its best week since 2023. But investors are taking little comfort with the rebound in stocks.

A declining dollar fell to a three-year low against the euro on Friday and spiking bond yields have some observers warning of a monumental, structural shift away from the US as a safe haven due to the recent tariff turmoil.

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