High volatility around holiday weekends is very common. Market participants are all in the Hampton’s or on holiday and fewer participants can lead to lower liquidity. This is true in equity and fixed income markets. A strong jobs report suggests that the Fed may still raise rates this month, which adds to the uncertainty for financial markets. Market declines on Fridays often follow through to the next week as investors take stock of losses and sell the on the open the following week. We hope this isn’t the case but feel we are in oversold territory.
Have a happy and safe Labor Day weekend.