Shanghai Composite Drops Nearly 6%

Adviser Investments Chief Investment Officer Jim Lowell has the market analysis for Monday, May 6.  The Dow Jones Industrial Average, S&P 500 and NASDAQ Composite fell 0.3%, 0.4% and 0.5%, respectively, as U.S.-China trade negotiations, a North Korean ballistic missile test and other international tensions dominated headlines. Jim emphasized that although economic fundamentals remain strong, event-driven news increased market volatilityA measure of how large the changes in an asset’s price are. The more volatile an asset, the more likely that its price will experience sharp rises and steep drops over time. The more volatile an asset is, the riskier it is to invest in. in the U.S. and abroad: China’s Shanghai Composite closed down nearly 6%—the index’s worst one-day loss in more than three years.