Investors Should Take Note of Lower Stock Market Prices Today
The US stock market indices dropped again today, continuing a bearish week as the market anticipates days of Federal Reserve meetings and new retail data.
The Dow Jones fell 0.53% on Tuesday once the market opened, which resulted in a loss of 243 points. The Nasdaq lost 0.35%, and the S&P 500 fell by 0.38%. The losses were more pronounced today compared to yesterday, and the sharp decline could lead to a small uptick as the market stabilizes.
This decline could continue as the market collectively holds its breath for the short while until the Fed meetings are over and a new interest rate cut is decided on. If the cut is drastic, it could dramatically shift the market for a few days.
Nvidia (NVDA) continues to drop after experiencing price correction following recent highs and as scrutiny from the Chinese government regarding allegations of monopolistic behavior. The stock fell 0.25% today so far and may continue to fall as these conditions persist.
MicroStrategy (MSTR) was doing very well as its investment in Bitcoin paid off in a big way when Bitcoin surged once more. However, it looks like the company is experiencing price correction as well, and their stock fell 3.55% today.
Tesla (TLSA) gained 1.15% today in early trading. Many market analysts believe this stock will continue to do well since Tesla’s CEO is a close friend of Donald Trump, and some of Trump’s policies may directly benefit Tesla and its ability to penetrate the market and make a tidy profit.
Investment Potential and Payoff
There is potential for investors to buy the dip at the moment, as we do expect the market to bounce back in the coming weeks. Most of the market is down at the moment, but that could quickly turn around. The biggest factor contributing to a bullish market in the near future will be the interest rate cut. If that cut happens and it is as big as the ones that have already been effected this year, then we could see a strong reversal for the stock indices.
Year-end sales will soon be revealed, and some of those could spur market growth, particularly reports from Wal-Mart, Microsoft, Apple, and other heavy hitters that show shopping trends.
Donald Trump’s swearing in will occur in January, and that could have a positive impact on the market, as he puts new measures in place to protect big businesses and keep business within the US.
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