We take a look this morning at the Nasdaq’s stunning turnaround on Monday as the markets prepare for the latest Federal Open Market Committee meeting — and more in Tuesday’s stock market recap.
The Nasdaq fell as much as 4.9% at one point on Monday before rallying to close up 0.6%, while the S&P 500 went from down 4% to close up 0.3%.
The markets have fallen too far too fast, but I expect them to start to move higher.
As I mentioned in Monday’s stock market recap, a lot of reports are set to come out this week… The most important being Thursday’s gross domestic product data, which gives us the overall growth of the economy.
Elsewhere, Pfizer Inc. (NYSE: PFE) and BioNTech SE ADR (Nasdaq: BNTX) launched a clinical study focusing on a COVID-19 vaccine designed to target the omicron variant.
In this morning’s stock market recap video, you’ll learn which Federal Reserve report to pay attention to this week… why the market is exhibiting so much volatility… the odds of seeing stronger upside in the next few weeks… whether bonds are giving traders big clues… an update on momentum and volatility levels… plus the top sector and its top stock, and the bottom sector and its bottom stock.
Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to!
Roger’s Radar: S&P 500 Nears Correction
The S&P 500, the world’s most closely followed index, is nearing its first correction since the global market crash of 2020 following the outset of the COVID-19 pandemic.
The index is down about 9.5% from its record high set just a few weeks ago on Jan. 3. A correction is a 10% decline from a recent high.
The Nasdaq is down about 15% since setting a record high back in November as tech stocks sell off in preparation of the Fed raising interest rates this year.
The question everyone is waiting to be answered is how many times the Fed will raise rates. Higher rates hurt growth stocks because much of their earnings are projected to be years out, and higher rates cut into those potential profits.
Stock Market Recap: By the Numbers
This morning’s stock market futures recap:
DOW (mini)
- Close: 34,364.5.
- Futures: 33,973.
- Change: -274.
S&P 500 (mini)
- Close: 4,410.13.
- Futures: 4,337.75.
- Change: -65.75.
NASDAQ (mini)
- Close: 14,509.58.
- Futures: 14,210.75.
- Change: -290.
RUSSELL (mini)
- Close: 2,033.51.
- Futures: 1,997.7.
- Change: -34.4.
Note: Updated as of 9:23 a.m. EST
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On Tuesdays, I’ll detail the strongest and weakest sectors in the entire market. I’ll tell you exactly where I’d put my money and go long, and which ones I’d avoid or even short. Using my proprietary momentum indicator, you’ll get actionable ideas on every market sector, every single Tuesday.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.
