Stock Market Today: Dow Erases 1,100-Point Intraday Drop to End Higher
The S&P 500 was on pace to close in correction territory before reversing higher.


The stock market swoon appeared set to continue into a fourth week, with all the major benchmarks notching massive intraday losses.
Negative readings on IHS Markit's Flash Manufacturing Purchasing Managers Index (PMI) and Flash Services PMI – both of which came in well below economists' consensus estimates today (55.0 vs. 56.9 expected; 50.9 vs. 54.9 expected, respectively) – added to the bearish narrative on Wall Street, says Michael Reinking, senior market strategist for the New York Stock Exchange.
Specifically, it has been "dominated by increasing geopolitical risks; the hawkish Fed tone in anticipation of Wednesday's Federal Open Market Committee rate decision; and slim earnings beats combined with lacking earnings guidance," he writes.

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 environment we have been in for the past 13 years or so was created by quantitative easing, zero interest rates, and there is no alternative," says Matthew Tuttle, CEO and chief investment officer at Tuttle Capital Management. " Now that the Fed is going to unwind and raise rates, it is causing a repricing of the entire market." He believes that whatever the Fed is going to say on Wednesday is likely now priced in, and a short-term bounce isn't out of the quesion.
"However, I would expect that [bounce] to be short-lived and expect volatility through at least the end of the quarter until the market fully digests," Tuttle adds.
And bounce is exactly what the market did today. Bargain hunters swooped in during the final minutes of trading, sending the Dow Jones Industrial Average, which was off more than 1,115 points at its intraday low, up 99 points, or 0.3%, to 34,364.
The S&P 500 Index and Nasdaq Composite also erased their earlier losses to end the day higher (+0.3% at 4,410; +0.6% at 13,855).
Other news in the stock market today:
- The small-cap Russell 2000, which was down 2.8% at its session low, closed up 2.3% at 2,033.
- U.S. crude oil futures slumped 2.2% to finish at $83.31 per barrel.
- Gold futures gained 0.5% to settle at $1,841.70 an ounce.
- Bitcoin sank 3% to $37,175.53. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.)
- Kohl's (KSS) stock rallied 36% after The Wall Street Journal late Friday said a group of investors backed by hedge fund Starboard Value LP offered to buy the retailer for around $9 billion. The reports are unconfirmed and based on people familiar with the matter. UBS Research analyst Jay Sole reiterated a Sell rating on KSS in the wake of the news. "The key is we believe it could be challenging for the investor group to get financing for two reasons: 1) We doubt Kohl's real estate has enough value to serve as adequate collateral. 2) We don't believe an operational turnaround plan exists which will convince creditors to lend enough capital to make the deal happen," he writes in a note.
- Carvana (CVNA) shares popped 16.4% following a Morgan Stanley note that says the auto retailer might be oversold now that shares have lost more than half their value over the past three months. "We see CVNA at under $140 as a better risk/reward today than when the stock was at $40 two years ago, as we believe it has only solidified its moat/competitive advantage in recent years and remains the apex predator in auto retail," says analyst Adam Jonas, who called the company "the apex predator in auto retail." Jones reiterated his Overweight rating (equivalent of Buy) and set a 12-month price target of $430 per share.
How to Maneuver a Stock Market Correction
For a moment today, it looked as if the S&P 500 was going to join the Nasdaq in correction territory, which is defined as a decline of at least 10% from the most recent peak. Specifically, the index hit an intraday low of 4,222, well below its correction level of 4,316.
When the markets are barreling lower, as they've done thus far in 2022, it's really easy to lose your resolve – even if you consider yourself a buy-and-hold investor. This is the hardest part of the job.
"Investors have grown accustomed to steady, consistent gains over the past couple of years which makes the current bumpy ride feel more uncomfortable," says Jeff Buchbinder, equity strategist for LPL Financial.
But remember, markets don't move in a straight line, and drawbacks are a normal part of the process. So, instead of saying "woe is me," look for opportunities within the stock market – including in high-yield dividend stocks or monthly dividend payers, whose steady stream of income can help protect a portfolio against bouts of volatility.
For some more tips, make sure to check out our guide on how to maneuver through a stock market correction. Scary as they are, pullbacks come with the territory – and having a plan in place can help investors better deal with them.
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
‘I Play Pickleball in Retirement.’ Is It HSA-Eligible?
Retirement Tax Staying active after you retire may be easier with these HSA expenses. But there’s a big catch.
-
What New Tariffs Mean for Car Shoppers
The Kiplinger Letter Car deals are growing scarcer. Meanwhile, tax credits for EVs are on the way out, but tax breaks for car loans are coming.
-
Stock Market Today: Stocks Slip Ahead of Big Earnings, Inflation Week
Perhaps uncertainty about tariffs, inflation, interest rates and economic growth can only be answered with earnings.
-
Stock Market Today: Solid Signals Lift Stocks Despite Tariff Noise
Markets are whistling over the White House in an ongoing display of corporate America's enduring ability to survive and advance.
-
Stock Market Today: Trump's Copper Comments Cause a Stir
Markets remain resilient and monetary policy makers stand fast against a rising tide of new terms of trade, including around copper.
-
Stock Market Today: Trump Reextends His Tariff Deadline
When it comes to this president, his trade war, the economy, financial markets and uncertainty, "known unknowns" are better than "unknown unknowns."
-
Stock Market Today: President Trump Reboots the Tariff Trade
A broad consensus that markets hate uncertainty more than anything else is being tested on an almost daily basis in 2025.
-
Stock Market Today: It's 'Most Sectors Go' Ahead of Independence Day
The resilience trade continues to work, even for sectors and stocks with specific uncertainties.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs After Vietnam Trade Deal
Ahead of a key July 9 tariff deadline, President Trump said the U.S. has reached a trade deal with Vietnam.
-
Stock Market Today: Another Quarter, More Mixed Price Action
"Up and to the right" remains the general trend despite persistent uncertainty around critical policy issues.