WHAT’S BEHIND THE STOCK MARKET VOLATILITY AND WHAT TO DO NOW

If you were watching the stock market recently, you likely have whiplash.

The tech-heavy Nasdaq Composite dropped 5% Thursday, May 6th, the index’s biggest one-day percentage decline since June 2020. The S&P 500 slid 3.6%, and the Dow Jones Industrial Average, 3.1%. It was a major reversal from Wednesday, when stocks rallied and the Dow and S&P 500 — which track the performance of some of the nation’s largest companies — saw their biggest daily gains since 2020.

When markets do a U-turn, it’s easy to panic. But financial experts say market volatility like this is normal.

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