Monday, stocks gained 0.5% in Europe, 0.9% in Asia and the U.S. on moderate volume. The VXO fell 5% to close at 14.21. Tuesday, stocks changed little in Asia and Europe but sold off 1.4% in the U.S. on strong volume in response to slightly hawkish comments by the new Federal Reserve chair Jerome Powell. The VXO moved up 19% to close at 16.85 while the 10-Year U.S. Treasury Bond yield rose 2%, to close at 2.91. Precious metals lost 1% while their miners fell three times that amount.
Wednesday, stocks fell 0.3% in Asia, 0.7% in Europe, and 1.3% in the U.S. on high volume. The VXO moved up 8% to close at 18.14. Thursday, stocks fell in Asia 0.6%, in Europe 1.3%, and in the U.S. 1.1% on very high volume. The VXO ramped up 13% to close at 20.44. Fear returned as “investors” considered that perhaps the party might finally be over. The Dow Jones Industrial Average ended the day below 25,000 again and the S&P 500 closed below 2700. Flight to safety increased demand for U.S. Treasury bonds forcing the yield down 2% to close at 2:80 as concern for possibly four interest rate hikes this year weighed on sentiment.
Friday, stocks fell 1.6% in Asia and 2.1% in Europe but rose 0.3% due to an end-of-the-day rally in stocks in the U.S. on strong volume. The VXO fell 7% to close at 19.08. The last few hours of the week served as a reprieve for an otherwise difficult week for stocks.