After a remarkably calm stretch, markets have reminded us that they can still move down. Over the past two weeks, we’ve seen a few sharper daily declines (especially with the NASDAQ and tech sector), something we hadn’t experienced much of this year.

It may feel uncomfortable, but it’s actually quite normal. What’s not normal is how steady markets have been in 2025. Historically, it’s typical to see several 1% or 2% down days in a year. This year, we’ve had very few – until recently.

The chart below shows the number of 1% and 2% daily drops on the S&P 500 for each year over the past 25 years. As you can see, occasional bouts of volatility are part of a healthy, functioning market. Periods of calm don’t last forever, and brief pullbacks often reset expectations and create opportunities. In short: volatility has returned, but it’s a return to normal, not signaling something abnormal.

I've also included a piece from our CIBC Economics team entitled "Precipices, cliffs or otherwise".

As always, if you have any questions, please feel free to give us a call at any time.

Have a great weekend.

Milan