The stock market was making big moves again on Tuesday, but this time in a direction that should make investors happy. The Dow jumped more than 500 points in early trading on Tuesday to reclaim its 30,000 threshold. The rise of 1.6% was eclipsed by the benchmark S&P 500 and the tech-heavy Nasdaq, each of which were up more than 2%. As the Wall Street Journal notes, this comes after the market suffered its worst week in two years last week. (The US markets were closed Monday for the June 19th federal holiday.) The uptick applies to cryptocurrency as well, with bitcoin back above 21,000, up 19% from its weekend lows.
The big question: Will the rally last? Two views:
- Gloomy: "This still feels like a bit of a dead-cat bounce," Viraj Patel of Vanda Research tells the Journal, using the nickname for a short-lived rally. He suggests the recent sell-off triggered by the Federal Reserve's aggressive raising of interest rates "still has legs to go."
- More hopeful: "There's not a single reason for the bounce in equities, and the overwhelming view is dismissing the uptick as being nothing more than dead cat, something that should be faded just like all the other rally attempts lately," wrote Adam Crisafulli of Vital Knowledge, per CNBC. "We push back a little bit on that view," he wrote, adding that the market seems to have already priced in trouble related to inflation.
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