(Tuesday Market Close) What a wild day on Wall Street. While the market did finish moderately lower, the big story was a major reversal that brought indices back to nearly even at one point following a huge early plunge.
After tumbling more than 500 points early on, the Dow Jones Industrial Average ($DJI) and other major indices came roaring back at midday, with the $DJI at one point coming within 30 points of the flat line. The markets still finished a good deal lower, but well off the early lows.
There didn’t really seem to be much of a fundamental catalyst behind the reversal. Instead, technical factors might have played a bigger role. Buying interest appeared to perk up across the market once the S&P 500 Index (SPX) posted a new five-month low underneath 2710—the level hit more than a week ago. The SPX then flirted with that mark for a while before investors came pouring back into the FAANG stocks, with the rally spreading from there.
This is the biggest intraday turn-around in months, and from a technical standpoint could point to some possible strength in the charts. That doesn’t mean the pressure is over, because there’s still plenty of geopoli
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October’s volatility isn’t showing any signs of letting up as risk-off sentiment appears to set the tone for today.
Stocks begin the new week with a muted tone ahead of a host of earnings reports and as rallies in Europe and China seem to lend support.
This turbulent week marches toward a close with the pendulum swinging back into green again, at least for now. Continued volatility wouldn’t be surprising, especially with a heavy set of info tech earnings on the way next week.
The market got knocked back down in a big way Thursday, upending most of the week’s early gains. Growing concerns about earnings and geopolitics seem to be raising investor worry.
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