Volatility

U.S. stocks saw their worst day in nearly two years on Monday.

Major U.S. stock market indexes (Dow Jones, S&P 500, and NASDAQ) all tumbled more than 2.5%, with tech stocks being hit particularly hard.

So why all the drama?

Some investors are worried the Fed is being too slow to cut interest rates and believe last week’s report of rising unemployment is foreshadowing a recession. Others are worried that tech stocks have been overvalued due to AI hype. The panic was heightened by Japanese stocks plummeting 12.4% on Monday––its largest daily drop since 1987––caused in part by concerns over the strengthening Japanese Yen.

In typical stock market fashion… things looked very different just one day later. Yesterday, AKA “Turnaround Tuesday,” Japanese stocks recovered 10%, and U.S. stocks rebounded 1%. 

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ETERNAL PERSPECTIVE: 
Too often we let eternally insignificant things like the ups and downs of the market control us. Seeking to steward money well is a good thing, but keep your focus on the Giver rather than the gifts.

“For you know the grace of our Lord Jesus Christ: Though he was rich, for your sake he became poor, so that by his poverty you might become rich.”
2 Corinthians 8:9 (CSB) (read full passage)