Why Are Financial Markets So Volatile?

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Why Are Financial Markets So Volatile?
When big companies like Target announce they’re feeling the effects of inflation, Wall Street doesn’t like it.

Volatility has ruled the markets.   

What’s happening?  Just look at the headlines. 

Major events like the pandemic, the war in Ukraine, and supply chain issues have all led to inflation. 

Inflation hit its highest level in forty years. Prices of essentially everything have jumped.  

And when big companies like Target announce they’re feeling the effects of inflation, Wall Street doesn’t like it.  

This is what happened when the pandemic hit in 2020. Investor panic triggered by economic uncertainty led to the collapse of stock prices.  On March 16th alone, all three indices dropped by at least 12 percent. 

Newsy digs into what causes volatility like this, and the effects it has on our financial systems.