U.S. stocks poised for slight bounce back after worst day in almost 2 years
Stock indexes saw mild bounce backs as trading opened Tuesday following a significant sell-off Monday that left major indexes with their worst day in almost two years.
Stock indexes saw mild bounce backs as trading opened Tuesday following a significant sell-off Monday that left major indexes with their worst day in almost two years.
The S&P 500 was up nearly 1%, while the tech-focused Nasdaq Composite was 0.6% higher. The Dow Jones Industrial Average was up three-quarters of a percent.
The recovery comes as Japan's Nikkei stock index, which saw its worst day in a generation Monday, rallied for its best day since 2008, surging 10.2%
A trader works on the floor of the New York Stock Exchange ahead of the closing bell on Aug. 5, 2024. Charly Triballeau / AFP - Getty ImagesStill, Tuesday's gains are unlikely to make up for the losses stocks suffered Monday. The Dow plunged more than 1,000 points, or 2.6%, the S&P fell 3% and the Nasdaq dropped 3.4%.
Some market participants said Monday's tumble was overdone. In a note to clients Tuesday, Goldman Sachs analysts noted central banks like the Federal Reserve "are no longer constrained by the fear of high inflation" and are ready to lower interest rates. Plus, investors across the spectrum have built up "very significant cash piles" that can be used to purchase stocks at their suddenly lower prices, they wrote. And debt among firms remains low, meaning they "can absorb the impact of weaker growth better than in many other downturns."
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