Indexes end with strong gains, rebounding from global market sell-off
Tue August 6, 2024 5:04 PM
Some encouraging anti-recession remarks from Fed officials today began to reverse the panic the market has been besieged with since Thursday triggering at least a buying spree which was really quite exuberant until about 3 pm when all the indexes went south again losing much of the session’s gains. The Dow had in fact risen almost 800 points before falling back to close with a gain of just under 300. There was no explanation for the eleventh-hour collapse but, nonetheless, the headline of “Indexes End With Strong Gains,” needs to be taken with a grain of salt since they really only recovered about 10% of the last three days’ losses.
But even this modest recovery is very good news as valuations have
been very stretched so the correction of the last few days has really just
brought the market down to a more realistic and sustainable level. And though
Q2 has been quite good, it hasn’t been great. The Fed’s comments, though
positive, has caused yet another reassessment of the September rate cut with
the odds of the ½ point today lowered to 75% (vs yesterday’s 86%) and the ¼ point
raised to 25% (vs yesterday’s 14.) Volume was again exuberant coming in at 13.5
billion, still above the average of 12.5 billion.
DJ: 38,703.27 -1,033.99 NAS: 16,200.08 -576.08 S&P: 5,186.33 -160.23 8/5
DJ: 38,997.66 +294.39 NAS: 16,366.86 +166.77 S&P: 5,240.03 +53.70 8/6
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