Markets

Stock Market Today: Dow, Nasdaq Recover From Early Losses

Monday's trading started with heavy losses, but the Dow recovered and finished in the black thanks to a little help from the Fed.

A weekend's worth of troubling COVID-19 data bubbled up into heavy selling Monday morning – but, spurred in part by yet another market assist from the Federal Reserve, eventually turned into buying.

Much of the Sun Belt is experiencing rapid increases in coronavirus case loads, and North Carolina and Texas both registered record numbers of hospitalizations over the weekend.

However, investor sentiment improved as the day went on, and the major indices all headed into positive territory in the afternoon. Helping lift spirits was a Fed announcement that it would extend its bond-buying efforts from exchange-traded funds to individual issues.

The Dow, which dropped by as much as 762 points early on, finished up 157 points, or 0.6% to 25,763. The S&P 500 Index finished 0.8% higher to 3,066. The Nasdaq fared even better, gaining 1.4% to 9,726. And the small-cap Russell 2000 bested them all, closing up 2.0% to 1,416.

The market's renewed volatility continues as it tries to digest a rapid multimonth rebound. "This is now one of the greatest surges off a major low ever," Ryan Detrick, senior market strategist for LPL Financial, writes about the gains since the March lows. "It is perfectly normal to see a drawdown of double digits after the initial surge weakens."

Last week, we stressed the importance of shaking loose weak holdings – such as these S&P 500 stocks that are sitting on shaky foundations – in the midst of uncertain markets. Billionaires, hedge funds and other institutional investors are doing exactly that.

We regularly look at the billionaires' top stocks for potential buy ideas, but the stocks they're selling can be equally educational. Some sales are clear votes of no confidence (but not all). Read on as we highlight 25 major stock sales by big-money investors this year, such as David Tepper, Carl Icahn and Warren Buffett, and examine the likely motives behind the moves.

Most Popular

Refunds for $10,200 Unemployment Tax Break to Begin This Week
Coronavirus and Your Money

Refunds for $10,200 Unemployment Tax Break to Begin This Week

The IRS will start issuing automatic refunds in mid-May to people eligible for the unemployment benefit tax exemption.
May 14, 2021
18 Worst Things to Buy at Dollar Stores
spending

18 Worst Things to Buy at Dollar Stores

These discount retailers stock plenty of bargains, but some of the merchandise isn’t worth the buck.
May 14, 2021
Thinking of Buying an RV or Motor Home? Think Again!
personal finance

Thinking of Buying an RV or Motor Home? Think Again!

A Lemon Law attorney has some insights on the downsides of RV ownership you should think about before putting your money down and hitting the road.
May 16, 2021

Recommended

Preferred Stock: Should I Buy It?
investing

Preferred Stock: Should I Buy It?

Thinking of adding preferred stock to your portfolio? Read on for a breakdown of the pros and cons to buying preferred shares.
May 17, 2021
7 Steps to Teach Kids How to Invest
investing

7 Steps to Teach Kids How to Invest

Not even half of U.S. states offer financial literacy classes in high schools, so parents have to pick up the slack. Here are 7 tips to teach investin…
May 15, 2021
11 Transformative M&A Deals You Should Care About
investing

11 Transformative M&A Deals You Should Care About

The M&A market is expected to heat up this year. Here are 11 noteworthy merger-and-acquisition stories we're following.
May 13, 2021
5 Pick-and-Shovel Solar Stocks for the Green Energy Gold Rush
investing

5 Pick-and-Shovel Solar Stocks for the Green Energy Gold Rush

With a progressive administration focused on climate change, these five solar stocks could be worth a closer look for investors.  
May 11, 2021