Market Volatility: The Impact of Algorithms on Trading

Reported about 18 hours ago

In a recent episode of Yahoo Finance's Trader Talk, host Kenny Polcari and guest Adam Johnson discuss the factors affecting market volatility, including investor psychology, Federal Reserve policies, and the influence of algorithms. Johnson emphasizes the tendency of markets to react strongly to good news, raising inflation fears, while Polcari cautions investors to consider economic indicators before making stock purchases. They both highlight the role of automated algorithms in exacerbating market fluctuations, particularly when triggered by fear indicators, and the potential challenges for stocks if the 10-year Treasury yield reaches 5% amidst inflationary pressures.

Source: YAHOO

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