Check out the chart below to see the losses from some of the stocks with the most perceived exposure to OpenAI since the S&P 500 set its last record high on Jan. 28. The start-up is banking on significant growth over the next few years, combined with substantial inflows from investors, but neither of those things is guaranteed. Fortunately, the market recovered to set new all-time highs on each occasion, but are we headed for another steep correction or even a bear market? Investors should make investment decisions based on their unique investment objectives and financial situation.
Gold and silver prices hit high after tariff threat
In addition to the new visitor center, a wide-ranging program of lectures offers you a wealth of financial and stock market knowledge. When you are thinking about investing in shares, it’s generally a good idea IP-Watch: Informal and formal seed systems to consider holding them alongside other investments in a diversified portfolio of assets. When it comes to stock market reporting, media outlets should re-examine their goals. What explains why the average daily performance of the DAX on the nightly news was so much worse than the actual performance? Intuitively, sizeable downturns in the stock market are more frequent than equally large upturns.
Tuesday finance with Alan Kohler
While concerning to investors, corrections are a normal part of market cycles because markets do not move in a straight line, and price “resets” often occur after strong gains or shifting expectations. Recent inflation data underscores why markets continue to debate “soft landing” versus renewed price pressure. AI-related leadership remains an important engine for performance, with information technology and communication services stocks reasserting strength after a slower start to 2025.
- Investors should make investment decisions based on their unique investment objectives and financial situation.
- Angelo graduated magna cum laude with a bachelor’s degree in business administration from Athens University of Economics and Business in Greece and received an MBA with concentrations in finance and investments from Minnesota State University.
- Edward Jones’ Canadian advisors may only conduct business with residents of the province(s) in which they are registered.
Any information we provide is to help with your research and isn’t financial advice. Treasuries added to yesterday’s rally following the data. However, they quickly reversed course after White House Senior Economic Advisor Kevin Hassett talked down expectations for upcoming labor data. Ahead of the open Treasury yields moved modestly higher following reports that Chinese regulators had reportedly told financial institutions to pare holdings of US Treasuries.
In this environment, investors often focus less on predicting the next downdraft and more on building staying power through different market regimes. Politics has also intersected with monetary policy in ways markets watch closely. Median Fed projections anticipate another 2026 cut, while investors expect two additional cuts, showing how quickly market pricing can diverge from official guidance. When more areas participate, markets often become less reliant on a single narrative to keep moving higher. The “One Big Beautiful Bill Act’s” (OBBBA’s) business stimulus measures have lifted earnings expectations, adding another reason investors watch sectors beyond mega-cap technology.
Diversification matters because different assets and sectors can respond differently to growth, inflation and interest-rate shifts, which can help reduce reliance on any single market outcome. The S&P 500 has spent 29% of time since 1927 trading 10% or more below a recent high, reinforcing that double-digit pullbacks are not unusual. Corrections occur often enough that long-term investors generally treat them as part of the market’s regular rhythm rather than as rare events. The average correction (10%-20% decline) lasts 17 days but any single episode can be shorter—or longer—depending on whether the decline reflects temporary sentiment shifts or deeper economic stress.