Markets

Stock Market Today: Nasdaq's 5-Day Win Streak Snapped

A broad-market downturn Tuesday ended the Nasdaq's five-day win streak and sent economically sensitive industries to deep losses.

Wall Street’s underlying worries about the resilience of the economic recovery were given room to roam Tuesday thanks to a dearth of significant new positive data.

COVID-related hospitalizations are rising across much of the Sun Belt, and yesterday once again saw a new record rolling seven-day average of daily new cases. That caused economically sensitive stocks such as American Airlines (AAL, -7.0%) and Carnival (CCL, -6.6%) to lead the market lower today.

The tech-heavy Nasdaq Composite finally suffered a loss after five consecutive up days, closing 0.9% lower to 10,343. The S&P 500 dipped 1.1% to 3,145, and the Dow Jones Industrial Average was the worst of the major blue-chip indices, closing 1.5% down to 25,890. The small-cap Russell 2000 declined 1.9% to finish Tuesday's session at 1,416.

There were a handful of bright spots, however.

Walmart (WMT, +6.8%), for instance, leaped on news that it will launch an Amazon Prime competitor subscription service later this month for $98 annually. The service reportedly will include perks such as same-day grocery delivery and discounts on fuel.

And Novavax (NVAX, +31.6%) roared ahead after announcing the federal government is awarding the biotech company $1.6 billion to help speed up development of a COVID-19 vaccine.

A Sideways Summer?

Every rally needs the occasional breather, and there’s little in Tuesday’s pause to signal deeper declines ahead. But some on Wall Street are increasingly of the mind that we could be in for a sideways summer following Q2’s rapid stock-market recovery and amid a batch of fresh question marks about America’s ability to fend off the coronavirus.

The fall elections could be trouble, too.

“Markets tend to be volatile ahead of elections because of the uncertainty around possible policy changes,” Ryan Detrick, senior market strategist at LPL Financial, writes in a recent note. "In this election, the stakes are particularly high for corporate America because a takeover of the Senate by Democrats and a possible Biden victory reportedly may lead to an increase in the corporate tax rate from 21% to 28% and unwind the corporate earnings boost the 2017 Tax Cut and Jobs Act delivered."

Investors looking to dampen at least a little of the volatility until the next bull run can find strength in numbers; after all, 100 stocks are far less likely to take you on a wild ride than one.

You can get that kind of diversification for dirt cheap via these eight low-cost index funds. And you can’t really have a discussion about inexpensive market exposure without mentioning Vanguard, which has a number of indexed and active products alike to help you harness the market’s next leg up.

However, if you’re looking to get tactical, explore the many actively managed options from Fidelity. The fund provider offers many options that tap into growth, whether it’s in U.S. large caps, lesser-known small firms or corporations across the globe. Here, we explore 15 noteworthy Fidelity mutual funds with no minimum investment requirement:

Most Popular

2 Credit Card Gotchas to Watch Out For
credit cards

2 Credit Card Gotchas to Watch Out For

After an infuriating wake-up call with her own credit card company, one financial services consultant wants consumers to know something: It’s smart to…
October 20, 2020
Election 2020: Joe Biden's Tax Plans
taxes

Election 2020: Joe Biden's Tax Plans

With the economy in trouble, tax policy takes on added importance in the 2020 presidential election. So, let's take a look at what Joe Biden has said …
October 15, 2020
When Retirees Question More Retirement Income
annuities

When Retirees Question More Retirement Income

What would you say if I told you that you could safely get significantly more retirement income from your retirement savings? That’s what I call an In…
October 20, 2020

Recommended

11 Dividend-Paying Stocks You Should Think Twice About
dividend stocks

11 Dividend-Paying Stocks You Should Think Twice About

Dividend-paying stocks often can be a store of safety, but 2020 has been difficult on income equities. These 11 picks look like shaky plays despite th…
September 21, 2020
13 Dividend Stocks That Have Paid Investors for 100+ Years
stocks

13 Dividend Stocks That Have Paid Investors for 100+ Years

Here are 13 dividend stocks that each boast a rich history of uninterrupted payouts to shareholders that stretch back at least a century.
May 21, 2020
Stock Market Today 10/21/20: Snap Soars, Netflix Nosedives as Stocks Sit and Wait
stocks

Stock Market Today 10/21/20: Snap Soars, Netflix Nosedives as Stocks Sit and Wait

Stocks mostly treaded water Wednesday as stimulus negotiations continued, but Snap (SNAP) and Netflix (NFLX) provided some fireworks.
October 21, 2020
Stock Market Today 10/20/20: Glimmer of Stimulus Hope Gives Stocks a Small Lift
stocks

Stock Market Today 10/20/20: Glimmer of Stimulus Hope Gives Stocks a Small Lift

Tuesday's rigid stimulus deadline seemingly blurred as House Democrats and the White House made progress toward a middle ground.
October 20, 2020