What's Driving Market Volatility Right Now
If investing were a straight, predictable path, reaching long-term financial goals would be easy. But as you’ve likely experienced, the journey is anything but smooth.
Unexpected events have a way of showing up at the worst possible times—creating stress, uncertainty, and market volatility. That’s exactly why a well-built financial plan always takes risk tolerance into account. It’s not just about growth; it’s about how you handle the bumps along the way.
And lately, there have been quite a few bumps.
Over the past few months, markets have been on a particularly uneven ride. Several key issues have been driving both volatility and investor concern:
Geopolitical tensions are back in focus
The U.S. continues to reshape its economic and geopolitical relationships globally, and that’s adding a layer of uncertainty. More recently, the military conflict involving Iran has weighed heavily on markets. Reports from Bloomberg noted that what began as a market pullback has started to feel more like a broader sell-off, as hopes for de-escalation and stabilization in oil markets have so far fallen short. When conflict disrupts something as critical as energy supply, markets tend to react quickly—and not always calmly.
Economic forecasts are shifting
The Organization for Economic Cooperation and Development (OECD) recently warned that tensions in the Middle East are testing the resilience of the global economy. Their latest outlook suggests inflation could move meaningfully higher in 2026. For investors, shifting expectations around inflation and growth create uncertainty about interest rates, corporate earnings, and overall market direction.
Consumer confidence is slipping again
Earlier in March, consumer sentiment showed signs of improvement—but those gains didn’t last. According to the University of Michigan’s Consumer Survey, confidence dropped later in the month as geopolitical tensions intensified.
Notably, higher-income households and those with investment exposure saw some of the largest declines in sentiment. Rising gas prices and volatile markets tend to hit both wallets and emotions at the same time. And sentiment matters more than many people realize—because it often drives spending behavior, which in turn drives economic growth.
When confidence falls, spending tends to slow. And when spending slows, so does the economy.
Government debt continues to climb
Another headline that caught investors’ attention: U.S. national debt recently surpassed $39 trillion for the first time. The Peter G. Peterson Foundation noted that the growing gap between government spending and tax revenue is expected to widen in the years ahead. While this isn’t a new issue, it continues to raise long-term concerns about fiscal stability and policy decisions.
Markets are reflecting all of this uncertainty
Last week, both the Nasdaq Composite and the Dow Jones Industrial Average entered correction territory, meaning they’ve fallen 10% or more from recent highs. The S&P 500 also moved lower. At the same time, bond yields climbed—driven by rising inflation expectations and changing assumptions about what central banks might do next.
This is a good example of how markets process multiple concerns at once: geopolitical risk, inflation, interest rates, and investor sentiment all feeding into each other.
If you’re feeling uneasy about what’s happening, that’s completely understandable. Periods like this can raise a lot of questions. As always, if you want to talk through your situation or revisit your strategy, I’m here to help.
Data as of 03/27/2026 | 1-Week | Y-T-D | 1-Year | 3-Year | 5-Year | 10-Year |
Standard & Poor’s 500 Index | -2.1% | -7.0% | 11.9% | 17.0% | 9.9% | 12.1% |
Dow Jones Global ex-U.S. Index | -0.5 | -0.3 | 19.8 | 13.0 | 4.3 | 6.0 |
10-year Treasury Note (yield only) | 4.4 | N/A | 4.4 | 3.5 | 1.7 | 1.9 |
Gold (per ounce) | -1.9 | 4.2 | 46.4 | 31.9 | 21.4 | 14.0 |
Bloomberg Commodity Index | -0.0 | 22.3 | 27.1 | 9.0 | 9.8 | 5.4 |
S&P 500, Dow Jones Global ex-US, Gold, and Bloomberg Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized; and the 10-year Treasury Note is simply the yield at the close of the day on each of the historical time periods. Sources: Yahoo! Finance; MarketWatch; djindexes.com; U.S. Treasury; London Bullion Market Association. Past performance is no guarantee of future results. Indices are unmanaged and cannot be invested in directly. N/A means not applicable.
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“The stock market is filled with individuals who know the price of everything, but the value of nothing"
—Philip Fisher