Artistone

Dow Jones Adds 99 Points as Stock Market Sees Mild Recovery

| Updated
by Benjamin Godfrey · 3 min read
Dow Jones Adds 99 Points as Stock Market Sees Mild Recovery
Photo: Depositphotos

Despite the gains recorded as recanted, the S&P 500 is still down more than 7.5% in the year-to-date period, as it is set to close this month as its absolute worst since March 2020.

With the current selloff in the United States stock market, many investors have seen it as an opportunity to stack up, pushing the Dow Jones Industrial Average (INDEXDJX: .DJI) up 0.29% atop a 99.13 points addition to 34,364.50. The events in the stock market have made all major averages end Monday’s session with mild gains across the board.

The S&P 500 Index (INDEXSP: .INX) inked a 0.28% gain to 4,410.13, the tech-heavy Nasdaq Composite (INDEXNASDAQ: .IXIC) added 86.21 points atop a 0.63% increment to end Monday’s session at 13,855.13, while the small-cap stock market index, Russell 2000 Index (INDEXRUSSELL: RUT) recorded the highest percentage point of 2.29% to close at 2,033.51.

The damages the current bear season has done to the stock market are more engrafted than can be fathomed. Despite the gains recorded as recanted, the S&P 500 is still down more than 7.5% in the year-to-date period, as it is set to close this month as its absolute worst since March 2020 when the coronavirus was just fanning out. Both the Dow Jones and the Nasdaq Composite are also down by a mile, with the broader dip part of an overblown selloff as pointed out by Marko Kolanovic, a top market strategist at JPMorgan Chase & Co (NYSE: JPM).

“The recent pullback in risk assets appears overdone, and a combination of technical indicators approaching oversold territory and sentiment turning bearish suggest we could be in the final stages of this correction,” Kolanovic said. “While the market struggles to digest the rotation forced on it by rising rates, we expect the earnings season to reassure, and in a worst case scenario could see a return of the ‘Fed put’.”

Dow Jones and Stock Market Outlook Drivers

The Federal Open Market Committee (FOMC) commences its 2-day policy meeting today with the anticipation that more clarity is billed to be given to stakeholders at the end about when the interest rate hike is scheduled to kickstart exactly, as well as the percentage point it will be increased by.

The general fear of uncertainty in the wider economy accounts for why investors are likely rotating away from risky assets and injecting cash into value stocks. With the FOMC becoming more forthcoming per its macroeconomic policies, the volatility rocking the stock market and the key averages is bound to stop. This is because investors will have a better hang of what they are doing.

Earnings release for major conglomerates is billed to take place soon as economic observers will seek to pick out the links between these firm’s performances and the broader reference to the economy.

“The greatest fear is how the Fed reacts and keeps this balancing act,” Ann Miletti, head of active equity at Allspring Global Investments, told CNBC’s “Squawk on the Street” on Monday. “There’s going to be a lot of turbulence as we march through these next couple of months.”

Microsoft Corporation (NASDAQ: MSFT) inked a 0.11% gain to $296.37 with Amazon.com Inc (NASDAQ: AMZN) amongst the biggest names that lifted the Nasdaq Composite with a 1.33% growth to $2,890.88.

Business News, Indices, Market News, News, Stocks
Benjamin Godfrey

Benjamin Godfrey is a blockchain enthusiast and journalists who relish writing about the real life applications of blockchain technology and innovations to drive general acceptance and worldwide integration of the emerging technology. His desires to educate people about cryptocurrencies inspires his contributions to renowned blockchain based media and sites. Benjamin Godfrey is a lover of sports and agriculture.

Related Articles