Bulletin
Investor Alert

London Markets Close in:

Market Snapshot Archives | Email alerts

Sept. 22, 2020, 4:31 p.m. EDT

Dow recovers from intraday drop as S&P 500, Nasdaq snap four-day losing streak

Tesla shares fall as Musk plays down ‘battery day’ expectations

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Dow Jones Industrial Average (DJIA)
  • X
    S&P 500 Index (SPX)
  • X
    NASDAQ Composite Index (COMP)

or Cancel Already have a watchlist? Log In

By William Watts, MarketWatch , Sunny Oh


Getty Images
Fed Chairman Jerome Powell

Stocks rose Tuesday, recovering from intraday losses as the bulls appeared to overcome worries about renewed coronavirus lockdowns in Europe and rising political uncertainty in the U.S.

Investors also watched testimony by Federal Reserve Chairman Jerome Powell and Treasury Secretary Steven Mnuchin before a House panel.

What are major benchmarks doing?

The Dow Jones Industrial Average /zigman2/quotes/210598065/realtime DJIA -0.39%  rose 140.48 points, or 0.5%, to close at 27,288.18, after hitting an midday low of 26,989.93. The S&P 500 /zigman2/quotes/210599714/realtime SPX -0.06%  rose 34.51 points, or 1.1%, finishing at 3,315.57. The Nasdaq Composite /zigman2/quotes/210598365/realtime COMP +0.64% /zigman2/quotes/210598365/realtime COMP +0.64% /zigman2/quotes/210598365/realtime COMP +0.64% rose 184.84 points, or 1.7%, to 10,963.64. The S&P 500 and Nasdaq both ended four-day losing streaks, while the Dow snapped a three-day string of declines.

See : Nasdaq’s big bounce comes despite just a minority of stocks gaining ground

Stocks fell hard Monday, but ended the day well above session lows. The Dow dropped 509.72 points, or 1.8%, to finish at 27,147.70, after falling more than 900 points at its session low. The S&P 500 fell 38.41 points, or 1.2%, to end at 3,281.06 for its fourth straight daily fall, its longest losing streak since February. The Nasdaq Composite shed 14.48 points, or 0.1%, ending at 10,778.80.

What are major benchmarks doing?

Rising COVID-19 cases and threats of renewed lockdowns in Europe, along with heightened U.S. political rancor ahead of November’s general election, weren’t enough to prevent the market from recouping early losses on Tuesday.

Investors dipped their toes back into the market, snapping a string of declines for major equity benchmarks amid signs that the bearish momentum that had sent stocks plummeting on Monday had eased. Still, market participants remain worried that more sustained gains in U.S. markets may be hard to achieve in the face of the looming wall of market risks.

“Coronavirus concerns have resurfaced, worrying investors that a reversal in reopening progress could be near. More and more uncertainty is arising as we get closer to the election but no closer to congressional fiscal relief,” said Lindsey Bell, chief investment strategist for Ally Invest, in a note. “But we’re still optimistic this dip will be bought sooner rather than later.”

Bitterness in Washington has investors worried about the dimming prospects for an agreement between congressional Democrats and the White House on additional fiscal aid during the pandemic—a prospect complicated by the looming battle over a nominee to replace Ruth Bader Ginsburg, who died Friday, on the Supreme Court.

“The lack of new fiscal stimulus, unclear direction over coronavirus policy and now an intense Supreme Court-related political battle is causing a new level of angst in the markets,” said Kenny Polcari, managing partner at Kace Capital Advisors, in emailed comments. “Both political parties are now in a full flight with just a few weeks until election day. The U.S. election has begun to spin out of control.”

Se e: Stock-market ‘anxiety will only intensify over the next 60-90 days warns expert who profited in 1987 and 2008 crises

Concerns also have been rising about a second lockdown in parts of the developed world, contributing to anxiety over the prospect of renewed restrictions in the U.S.

“I don’t believe we’ll have a second lockdown in the United States, but it’s a simmering concern for investors and the markets,” Polcari said.

/zigman2/quotes/210598065/realtime
US : Dow Jones Global
27,577.70
-107.68 -0.39%
Volume: 141.88M
Oct. 27, 2020 11:50a
loading...
/zigman2/quotes/210599714/realtime
US : S&P US
3,399.07
-1.90 -0.06%
Volume: 887.30M
Oct. 27, 2020 11:50a
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,431.15
+72.21 +0.64%
Volume: 1.13M
Oct. 27, 2020 11:50a
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,431.15
+72.21 +0.64%
Volume: 1.13M
Oct. 27, 2020 11:50a
loading...
/zigman2/quotes/210598365/realtime
US : U.S.: Nasdaq
11,431.15
+72.21 +0.64%
Volume: 1.13M
Oct. 27, 2020 11:50a
loading...
1 2
This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.