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Wall Street Bounces Back After Latest News From Fed

'Volatility is here to stay, at least for a little while'
By Newser Editors and Wire Services
Posted Jun 15, 2020 3:59 PM CDT

(Newser) – It took just a few hours for fear to turn back into greed on Wall Street Monday, and stocks erased a sharp, early slump to notch healthy gains after the Federal Reserve unveiled its latest push to prop up the economy, the AP reports. The S&P 500 climbed 0.8% following the latest day of big swings in global markets, as a remarkable, weekslong rally shows some cracks amid worries about new waves of coronavirus infections. When trading began in New York, those worries seemed set to drag the US stock market to a loss following sharp declines in Asia and more modest ones in Europe. The S&P 500 quickly fell 2.5%, with stocks that most desperately need the economy to reopen hit particularly hard. But stocks and Treasury yields began to trim their losses as the day progressed.

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They popped decisively higher after the Fed said in the afternoon that it will buy individual corporate bonds. The S&P 500 rose 25.28 points to finish at 3,066.59, which is 9.4% below its record set in February. The Dow Jones Industrial Average gained 157.62 points, or 0.6%, to finish at 25,763.16 after earlier being down as many as 762 points. The Nasdaq composite added 137.21, or 1.4%, to 9,726.02. "Volatility is here to stay, at least for a little while," said Jason Pride, chief investment officer of private wealth at Glenmede. “Nobody in the financial industry has a good way to forecast this.” In Asia, South Korea’s Kospi dropped 4.8%, Japan’s Nikkei 225 lost 3.5% and the Hang Seng in Hong Kong fell 2.2%.

(Read more stock market stories.)

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