A sense of calm has returned to Wall Street after a volatile week but many strategists warn that volatility may not be over yet and could continue through the fall. Much of the recent volatility was driven by the unwinding of the yen carry trade where investors borrow at low rates in Japan and invest elsewhere. Strategists say thinner trading activity over the summer months and uncertainty around Fed policy and the elections could also lead to continued volatility. Economic data on inflation and jobs will determine if recession risks rise or fall.
