Last week, the S&P 500 (^GSPC) saw both its worst and best single-day performances of the year.
A sign to some on Wall Street that all is not well in markets right now.
On Monday, rising recession concerns, combined with a sell-off overseas, initiated a volatility spike and sent stocks tumbling, with the S&P 500 falling 3%.
On Thursday, stocks mounted their best one-day rally since 2022, rising 2.3% as a typically benign weekly unemployment benefit data release helped ease concerns about the economy.
DataTrek co-founder Nicholas Colas wrote in a note Friday morning that a rally of this magnitude following a report like initial jobless claims said “more about the stock market’s fragile state and nervousness about economic data than anything else.”
Renaissance Macro’s head of economics, Neil Dutta, agreed. “Markets are clearly on edge,” Dutta wrote in a note on Thursday morning. “We are…
