Stock Market in a Bad Position after the DJIA Index’s Fall
The Dow Jones Industrial Average Index continues to trade on the red, igniting a quiet uncertainty in the market.
After the Dow30’s 500-point fall, prominent Wall Street analyst Tom Lee asserted that the stock market is currently under a “dangerous” situation.
On the other hand, he assured that this could be erased by the end of the year, giving long-term investors a chance to sit back and relax.
In previous encounters, Lee had been gravitating towards the bullish expectation for stocks. Just last week, the analyst asserted that amid low-lows and a significant market pullback, the risk-reward for stocks remains positive.
He further added that some stocks are still on their 50% off from full-capacity, giving individual investors hope for a further rally.
The sudden but subtle shift in his stance sent some investors to reevaluate their portfolios.
Currently, investors have been shifting back to tech stocks after abandoning the sector during the start of the month.
Today, Apple Inc. outperformed counterparts in an intense trading day, signifying the possibility of reverting to previous highs. The Nasdaq frontrunner recorded a 3.03% increase to $110.08 per share.
Dow30, S&P500 Tumbles with Tech Rally
Meanwhile, shares of leading technology stocks move towards a bullish territory. As the major stock market index still recorded low trading sessions.
The Wall Street players are poised to their worst September sell-off in nearly 18 years. The S&P 500 is last down by 2.5% at 3,326 points, reaching its 10% market correction from its September 2 high.
The recent drop sets a stage for further ugly trading of the benchmark for the rest of the month.
Similarly, the Dow30 dropped 3% in the same session, gearing towards its month-to-date drop of 5.6%. Should the index fail to leave bearish grounds, this would represent its sharpest drop in September since 2011.
Similarly, the Nasdaq Composite is down 9.8% in the month-to-date but expected to pick up due to the looming tech rally.
Get the latest economy news, trading news, and Forex news on Finance Brokerage. Check out our comprehensive trading education and list of best Forex brokers list here. Subscribe now and receive FREE updates on the market today!