During 2017 the stock market in the United States had one of the best years that it had in a long time. The stock market was influenced by a variety of factors that included tax law regulation changes, improvements in jobs data, and great earnings from many different companies. While 2017 was a good year, 2018 has been far more volatile.
The start of 2018 was just as good as 2017. The Dow Jones Industrial Average increased to its highest point of all time by hitting 26,000 points. While January was great, the month of February has been far different. During February a few piece of negative information hit Wall Street and it sparked a panic sell. During the week of February 5-9, the US stock market had its two worst days on record ever.
While the stock market appeared to be in free fall during the first week of February, it now appears that the declines have stabilized and values are beginning to get back to where they were a couple of months ago (https://www.marketwatch.com/story/dow-on-pace-for-4th-win-in-a-row-as-market-braces-for-inflation-data-2018-02-14). Just a couple of days after the markets declined considerably, all of the major indices are back up several percent during the second week of February.
The increase in values in the US stock market is attributed to a range of different factors. One of the main reasons is that there have been very good earnings results released. Over the past few weeks many different US companies, including those in the tech, auto, and other industries have reported earnings that were far greater than estimates. This has helped to fuel optimism over future growth for many companies.
Another reason that people are buying back into the market is that it appears that the stock market drop could have provided a lot of value. Many notable companies, including some of the top tech firms in the world, saw that their stock values had declined by more than ten percent over just a couple of weeks. While this makes some people jittery, those that are looking for value found those stocks to be great target options.
While the stock market has increased in value, there is still plenty of concern over the future. There are several upcoming factors that could lead to a rise in volatility.