Black Monday, it certainly wasn't. But the 33rd anniversary of Wall Street's worst-ever trading day was nonetheless marked with red ink.
Investors continue to eye COVID stimulus negotiations, which now have a deadline. House Speaker Nancy Pelosi has said that an agreement must be reached by Tuesday to get a bill passed before the November elections. (The Kiplinger Letter's up-to-the-minute forecast: Don't count on relief passing the House and Senate prior to Nov. 3.)
Meanwhile, the U.S. on Friday recorded 68,000 new COVID-19 cases – the country's highest daily total since July – fueling concerns of a long-discussed "second wave" as we approach winter.
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The Dow Jones Industrial Average was actually 105 points (0.3%) higher in early trading, but it quickly flipped to losses that accelerated in the afternoon, culminating in a 1.4% loss to 28,195. Apple (AAPL, -2.6%) and Johnson & Johnson (JNJ, -2.6%) were the industrial average's steepest decliners, but the Dow 30's pain was widespread – every Dow 30 component but Intel (INTC, +0.8%) finished lower.
Other action in the stock market today:
- The S&P 500 declined 1.6% to 3,426.
- The Nasdaq Composite shed 1.7% to 11,478.
- Small caps were less dreary, with the Russell 2000 off 1.2% to 1,613.
Buckle Up
No matter how Washington's negotiations turn out, you can expect Wall Street to react with vigor. But from an investing standpoint, understand that "no deal" likely doesn't mean forever ... it probably just means not right now.
"We believe that the probability of a package pre-election is very small and that a bill is unlikely before the end of 2020," writes the Wells Fargo Investment Institute. "Our view is the best chance for an economic support program is in the first quarter of 2021. By then, a package of (conservatively) $2.0 trillion appears likely – possibly more if Democrats control both chambers in the new Congress."
If you can't stand the thought of another herky-jerky ride, you can look to bond funds to provide a counterbalance, or you can always raise a little cash and look for new opportunities once the dust has settled. But for most, we suggest worrying less about the next two days, and game-planning for the next few decades.
That's the idea behind these 10 buy-and-hold mutual funds. This group of products has something for everyone – core stock holdings, sector-specific plays and, of course, fixed income – but they all have a few traits in common, including low expenses and proven track records. Take a look.
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The 'Vinyl Rule' of Retirement: Plan for Two Sides in Your Next ActBecause “Life is what happens when you’re busy making other plans.”
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Five Destinations for Active and Chill Travelers AlikeWhether you reach for a paddleboard or a lounge chair, find your groove in a location that offers something for both kinds of travelers.
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Big Tech Names Rise Above Broad Weakness: Stock Market TodaySome familiar names enjoyed solid rallies on the resolution of outstanding questions, but macro uncertainty hangs over the broader market.
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If You'd Put $1,000 Into Sherwin-Williams Stock 20 Years Ago, Here's What You'd Have TodaySherwin-Williams stock has clobbered the broader market by a wide margin for a long time.
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If You'd Put $1,000 Into UnitedHealth Group Stock 20 Years Ago, Here's What You'd Have TodayUNH stock was a massive market beater for ages — until it wasn't.
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Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
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Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
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Nasdaq Ends the Week at a New High: Stock Market TodayThe S&P 500 came within a hair of a new high, while the Dow Jones Industrial Average still has yet to hit a fresh peak in 2025.
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Stocks Swing Lower as Eli Lilly, Fortinet Spiral: Stock Market TodayThe main indexes finished well off their session highs after a disappointing batch of corporate earnings reports.
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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.
