After two major sell-offs, leading U.S. indexes saw sharp swings yesterday, with the Dow Jones industrial average starting Tuesday significantly lower, before rallying and closing up 567.02 points at 24,912.77. The index traded in a range of 1,167.49 points through the course of Tuesday’s session.
Some of the reasons that investors gave for yesterday’s sharp swings included fears over interest rates, obscure volatility funds that use leverage, and computer-driven trading.
The positive sentiment seen on Wall Street yesterday providing a boost for international markets, with Asia-Pacific markets closing mixed to higherWednesday, while trade in Europe was relatively positive, after posting major declines on Tuesday.
While the volatility seen in markets is set to keep markets on edge Wednesday, investors will also pay close attention to data and earnings.
Earnings season continues to be in full swing with Wednesday Hasbro, and Michael Kors set to report before the open, while 21st Century Fox, Tesla Motors, IAC/InterActive, Yum China and Yelp are expected to publish updates after the bell.
Key members of the U.S. Federal Reserve are due to deliver separate remarks Wednesday. Dallas Fed President Robert Kaplan will be in Germany, where he is set to appear at the Institute for Monetary and Financial Stability (IMFS) working lunch. And San Francisco Fed President John Williams is slated to appear in Honolulu, speaking at the Community Leaders Luncheon.
