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Market Volatility Continues as Dow Attempts to Rebound from Friday's Steep Decline

Strategic Insights

— 1 min read

The Dow Jones industrial average struggled to find its footing early Monday, but ultimately managed to stay in positive territory thanks to bargain hunting in some blue chips. The Dow was ahead 9.01 points to 3880.43 at 11 a.m. EST, with IBM leading the charge after a big gain. Despite the modest gains, the market remained volatile, with declines outpacing advances 1,454-545 among the 2,555 issues crossing the NYSE tape.

Key Takeaways:

  • The Dow Jones industrial average plunged 96.24 points on Friday, its biggest one-day loss since November 15, 1991.
  • IBM was the top performer on Monday, up 2 to 54, helping to boost the Dow.
  • The New York Stock Exchange composite index was down 0.52 to 260.69, while Standard & Poor's 500-stock index was off 0.33 to 469.48.
  • Declines outpaced advances 1,454-545 among the 2,555 issues crossing the NYSE tape.
  • Treasury securities were moderately lower, while the U.S. dollar stayed mixed.
  • In overseas trading, the Tokyo stock market closed sharply lower, while the major European exchanges also headed south in midday trading.
  • Analysts said Monday's session would be a confrontation between bargain hunters and sellers who think the Federal Reserve will be much tougher after raising short-term interest rates.
  • Gene Seagle, technical research director at Gruntal & Co., called Friday's sharp decline "a temporary halt" to the market's record-breaking momentum.

Statistics:

  • The Dow Jones industrial average was down 96.24 points on Friday, a 2.4 percent loss in value.
  • The New York Stock Exchange composite index was down 0.52 to 260.69.
  • Standard & Poor's 500-stock index was off 0.33 to 469.48.
  • Declines outpaced advances 1,454-545 among the 2,555 issues crossing the NYSE tape.
  • Treasury securities were down 18/32 to yield 6.40 percent.
  • The U.S. dollar was changing hands at 1.7630 German marks and 108.80 Japanese yen.

Sources:

  • "Market jittery after Fed move" by The AP News Service, no date provided.
  • No date provided.
  • Gruntal & Co.

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