Stocks Attempting Comeback with Dow Now Logging Three Days of Wins
Stocks are up for Wednesday, but tech stocks could still struggle even a the Dow Jones continues to climb.
Quick overview
- All three major stock indices closed higher on Tuesday, marking the Dow's third consecutive day of gains.
- The Dow gained 1.4% on Tuesday, driven by strong performances from companies like Wal-Mart and Home Depot.
- The S&P 500 and Nasdaq are on track to report losses for November, following record highs in previous months.
- Market volatility continues as investors react to fears of a bubble in tech stocks, while dip buyers are pushing for recovery.
Tuesday ended with all three major stock indices closing higher than the day before, and this marked the third consecutive day of gains for the Dow Jones.
The market has been wildly erratic lately, with quick upticks followed by sharp drops, and investors may be feeling whiplash from the movements. But Tuesday ended with the Dow and the other leading indices making gains. The Dow is likely to sustain its bullish momentum, but the Nasdaq Composite and S&P 500 may dip again for Wednesday.
The Dow finished Tuesday with a gain of 1.4% and is expected to continue upward this week thanks to strong performances from Wal-Mart (WMT), Home Depot (HD), and a number of medical science companies. Meanwhile, tech stocks are fluctuating dramatically, held back by market fears.
Can the Market Recover November’s Losses?
Right now, the S&P 500 and the Nasdaq are on track to report losses for the month of November. Both indices had record breaking runs throughout September and October, reaching all-time highs and surging in what are typically quieter or even bearish months.
The pullback we have seen in November could be an equalizing response from the market to these bullish months, as stocks settle back to expected levels. However, weeks of decline for cryptocurrencies and stocks alike has placed pressure on these assets to perform well this week.
With Black Friday and Cyber Monday close, risky assets could benefit from the buying frenzy that tends to take place, but will it be enough to log a win for the top indices for the month? Dip buyers are at the forefront, pushing stocks that have fallen for weeks. The market could also receive a boost from the Federal Reserve as members of the Fed discuss a possible December rate cut.
Top tech stocks are still doing poorly, swinging between highs and lows but mostly trending down. Fears over a market bubble have kept leading technology stocks low and may continue to do so through the end of the month. The Dow has performed better than the other indices, though, with its less tech-heavy focus and is currently down just 1% for the month.
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