Volatility in the stock market returned with a bang this week, sending the DJIA and the S&P 500 to their first weekly losses since March. The DJIA suffered its worst drop in two months on Thursday, falling more than 7% on renewed concerns about an uptick in COVID-19 cases, and cautious words from the Federal Reserve.
Traders ran wild, and many chased hot IPOs like Nikola, the electric truck maker, and Vroom, the online car marketplace. Others made speculative bets on volatility itself, trading the short-term movements in the VIX.
Economic uncertainty only grew as a recession, which began in February of this year, was officially declared by the National Bureau of Economic Reporting.
These were the top spiking articles in another peculiar week in 2020:
Raging volatility and the steepest drop in markets in years brought new traders into game, as evidenced by a rush of new accounts at Robinhood, E*TRADE and others. This always happens, and it doesn't end well for most. That's why we have this article, and we hope new traders learn before they try to earn.
For traders who really like to live on the edge, this Exchange traded note seeks two times the daily return of the S&P 500 VIX Short-Term Futures Index. In other words, it's a bet on the short term movements of the stock market as seen through the options market. When volatility rises, this strategy sees a lot of action, but it is not for the timid.
A hot stock market brings new companies to the public, and 2020 has been a banner year so far, despite the recession. Anything electric or electronic seems to be gathering investor support, as evidenced by the impressive debuts of Nikola, the electric truck maker, and Vroom, the online car marketplace. Their valuations far exceed their sales, if they have sales at all, but exuberance sometimes overpowers reality in times like these.
It's easy to forget that its a huge election year in the U.S. amid everything else that's going on, but our readers didn't. This popular article saw renewed interest as campaign rallies begin anew and the economy wobbles towards November.
For the second week in a row, our readers came to this story to learn more about Black-owned businesses in the U.S. We'll be updating and expanding articles like this going forward as they deserve the attention they are getting.