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.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
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.
-
Bullish IPO: Should You Buy BLSH Stock?Wall Street is buzzing about the Bullish IPO, with the Peter Thiel-backed crypto company set to start trading today, August 13, under the ticker "BLSH."
-
How the 2025 Child Tax Credit Rules Impact Single ParentsTax Credits New changes to family tax credits, like the Child Tax Credit, will impact the eligibility of some households.
-
What Tariffs Mean for Your Sector ExposureNew, higher and changing tariffs will ripple through the economy and into share prices for many quarters to come.
-
How to Invest for a Fall Interest Rate Cut by the FedA lot can happen between now and then, but the probability the Fed cuts interest rates in September is back above 80%.
-
Are Buffett and Berkshire About to Bail on Kraft Heinz Stock?Warren Buffett and Berkshire Hathaway own a lot of Kraft Heinz stock, so what happens when they decide to sell KHC?
-
How the Stock Market Performed in the First 6 Months of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
My Three-Day Rule for Investing: And If it Applies NowStock Market I've seen a lot in my career. Here's what I see now in the stock market.
-
Is It Time to Invest in Europe?Stock Market Europe is being shaken out of its lethargy, militarily and otherwise, by Donald Trump's changes in U.S. policy. Should investors start buying?
