Stock volatility driven by news and market uncertainty: NYSE's Cunningham
New York Stock Exchange President Stacey Cunningham said the volatility that’s sweeping through U.S. financial markets is a reaction to the uncertainty in the news and uncertainty.
“We’re just seeing the markets to actually behave a little bit more normally you know, compare to the way they use to and the markets reactive to news,” she said during an interview with FOX Business’ Susan Li on Tuesday.
The energy sector dragged stocks lower as oil finished at a 1-year low. The Dow Jones Industrial Average fell 100.69 points or 0.4 percent, to 25,286.49 coming off a 600 point loss on Monday. The S&P 500 fell 4.04 points, or 0.2 percent, to 2,722.18 and the Nasdaq Composite Index showed little change adding 0.1 point to 7,200.87.
On Monday, Apple stock fell 5 percent after Lumentum Holdings, the company responsible for the iPhone's face-recognition technology, cut its earnings and sales forecast. Apple’s decline sparked a selloff that saw tech giants Amazon fall 4.5 percent and Tesla losing more than 5 percent.
Facebook, Google, Netflix, and Microsoft were also dragged into negative territory, down more than 2 percent.
The rout in tech stocks is the reason why investors believe there’s such big volatility in the markets.
“We’re actually seeing investors absorb news and the markets react much more quickly because they are using technology to react and you see reactions happen and you see them go up and down,” Cunningham said.