Stock Market Today

Stock Market Today: Stocks Fall on Anniversary of Bear Market Bottom

Rising short-term COVID concerns, including lockdowns in Europe and a trial-vaccine stumble, pulled down stocks across the board Tuesday.

Stocks marked the one-year anniversary of the COVID bear market's lowest point much the same way they acted on March 23, 2020 – they sold off.

Fortunately, today's declines were milder, and they came amid what's still a vastly more optimistic outlook for stocks, the economy and the public health.

Tuesday's selling, however, was sparked by short-term setbacks on the COVID front: renewed and extended coronavirus lockdowns in Europe, rising domestic caseloads in the U.S., and another setback for AstraZeneca's (AZN, -3.5%) experimental vaccine, after U.S. health officials said promising trial results might have relied on "outdated information." Oil prices were hit particularly hard: U.S. crude futures declined 6.2% to $57.76 per barrel, triggering a 1.5% decline in the energy sector (XLE).

But the weakness was widespread. The Dow Jones Industrial Average sagged 0.9% to 32,423, the S&P 500 lost 0.8% to 3,910, and the Nasdaq Composite retreated by 1.1% to 13,227. The small-cap Russell 2000 was a little truer to last year's escalated selling, plunging 3.6% to 2,185.

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

Other action in the stock market today:

  • Gold futures closed 0.8% lower to $1,725.10 per ounce.
  • Bitcoin prices declined another 1.5% to $55,011. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
stock chart for 032321

YCharts

The Bull Market: Year Two

The good news, then? Today is also the one-year anniversary of the current bull market, and historically, they do well in their second year.

"Since World War II, there have been six other bear-market declines of at least 30%, and in every single case the S&P 500 was up firmly the first year of a new bull market – with an average return of more than 40%," says Ryan Detrick, chief market strategist for LPL Financial. "The good news is the gains continued in year two, as stocks were also up the second year of a new bull market every single time – up a solid 16.9% on average. Only once (after the 1987 crash) did stocks gain more during year two than year one."

The S&P 500 is up much more than that average, with 75% gains through Tuesday's close. But if you look at the best stocks of the past year – with dozens returning between 300% and 1,000% – you'll see the story of where America has been, and where it's likely going.

Many stocks supporting work-from-home and e-commerce trends are still up massively from their March lows despite cooling off of late … but also, many "recovery" stocks have made the list thanks to red-hot recent runs as investors try to get ahead of the American reopening.

Read on as we take a quick look back at the past year in the markets, including a list of the new bull market's most fruitful stocks.

Most Popular

An Easy Way to Find How Much You Will Spend in Retirement
retirement planning

An Easy Way to Find How Much You Will Spend in Retirement

One simple math equation can help you determine where to start building your retirement income plan, and whether your money should last.
June 27, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
8 Money Tips for Seniors Suffering from Inflation
Inflation

8 Money Tips for Seniors Suffering from Inflation

This year has been an especially tough one for seniors on fixed incomes. To stay on track, try these eight financial survival tips.
June 26, 2022

Recommended

Stock Market Today (6/29/22): Markets Steady, But Bed Bath, Cruise Lines Tumble
Stock Market Today

Stock Market Today (6/29/22): Markets Steady, But Bed Bath, Cruise Lines Tumble

The calmest market day of 2022 wasn't nearly so pleasant for a few individual stocks, including retailer BBBY and cruise operator CCL.
June 29, 2022
Stock Market Today (6/28/22): Weak Data Opens Trap Door Under Stocks
Stock Market Today

Stock Market Today (6/28/22): Weak Data Opens Trap Door Under Stocks

Slack in manufacturing data and low consumer confidence tanked early-session optimism and left the major indexes with deep losses Tuesday.
June 28, 2022
Stock Market Today (6/27/22): Stocks Limp Out of the Starting Gate
Stock Market Today

Stock Market Today (6/27/22): Stocks Limp Out of the Starting Gate

Monday's session saw stocks give back a little territory from last week's rebound rally, but experts are seeing a few reasons to be optimistic.
June 27, 2022
5 Best Dow Dividend Stocks to Buy Now
blue chip stocks

5 Best Dow Dividend Stocks to Buy Now

This mini-portfolio of blue-chip dividend payers is well-positioned to both generate income and hold up to headwinds for the rest of 2022.
June 27, 2022