Wed. Nov 6th, 2024
alert-–-wall-street-stages-‘turnaround-tuesday’-after-biggest-sell-off-in-two-years-–-but-jpmorgan-warns-stock-market-rout-is-only-‘half-complete’Alert – Wall Street stages ‘Turnaround Tuesday’ after biggest sell-off in two years – but JPMorgan warns stock market rout is only ‘half complete’

It was a Turnaround Tuesday as stocks ended the day higher on Wall Street.

Calm returned to the market a day after its biggest pullback in almost two years on Monday.

The S&P 500 rose 1 percent Tuesday, breaking a brutal three-day losing streak. The Dow Jones climbed 0.8 percent, and the Nasdaq added 1 percent.

Strong profit reports from Uber and other companies helped support the market.

But JPMorgan warned a key factor causing the sell-off was only ‘between 50 to 60 percent complete’.

20:19

US stocks make a partial rebound to claw back some losses

Stocks closed higher on Wall Street as calm returned to the market a day after its biggest pullback in almost two years.

The S&P 500 rose 1 percent Tuesday, breaking a brutal three-day losing streak. The Dow Jones Industrial Average climbed 0.8 percent, and the Nasdaq added 1 percent.

Strong profit reports from Uber and other companies helped support the market.

The vast majority of stocks climbed in a mirror opposite of the day before, when the unravelling of some popular trades and worries about the US the economy wracked markets. Treasury yields climbed, clawing back some of their sharp drops since April.

Investors will be hoping this is a return to relative calm after a day of volatility.

FILE PHOTO: A sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar/File Photo

18:05

Wall Street relief after US stocks continue to bounce back

Investors breathed a sigh of relief as the S&P 500 was up 2 percent by 2pm.

The Nasdaq also saw gains of 2.3 percent on Tuesday afternoon.

Retail and institutional investors ‘buying the dip’, particularly in tech stocks, may be partly responsible for the rebound, Bloomberg reported.

‘The market by any metric is “oversold” and due for a bounce,’ Quincy Krosby at LPL Financial told the outlet.

‘The lingering question now is whether the concerns that pushed the market into a cascade of selling are alleviated.

‘Pockets of volatility are expected to continue,’ he added.

15:49

US stocks are bouncing back

On Wall Street at 11.12am the Dow Jones Industrial Average rose 399 points, or 1.03 percent, to 39,102.29.

The S&P 500 gained 1.42 percent to 5,259.80.

The Nasdaq gained 1.41 percent to 16,428.15.

Europe’s STOXX 600 index rose 0.46 percent in a volatile session with a dip of around 0.5 percent at its lowest point. The markets in Europe are now shut.

15:14

Wall Street analysts warn stock market meltdown is ‘only half complete’

Fears of a US recession were blamed for Monday’s stock market rout.

But another factor also played a big role, according to JPMorgan – the unwinding of so-called ‘carry trades’.

A carry trade is when an investor borrows money in a currency with low interest rates. This has been happening with global investors borrowing in Japan, where interest rates were very low unlike most countries like the UK and the US.

But the Japanese yen has gone up in value by 11 per cent against the dollar in the past month after it became clear the Japanese central bank was set to raise interest rates.

That meant investors then had to unwind these carry trades.

‘We are not done by any stretch,’ Arindam Sandilya, co-head of global FX strategy at JPMorgan, said on Bloomberg TV.

‘The carry trade unwind, at least within the speculative investing community, is somewhere between 50 to 60 percent complete.’

NEW YORK, NEW YORK - AUGUST 1: Stock market indices are seen on display at the New York Stock Exchange (NYSE) on August 1, 2024 in New York City. New economic data showed initial jobless claims rose the highest in a year and a manufacturing index that measures factory activity in the U.S. came in worse than expected, causing renewed worries of a recession and a broad sell off in stocks, including the Dow sinking 1.21%, the S&P 500 1.37% and the Nasdaq 2.3%. (Photo by Jeenah Moon/Getty Images)

14:56

The Great Fake-Panic of 2024: Shark Tank star KEVIN O'LEARY reveals his advice to terrified investors who were wiped out – and how to protect yourself from market hysteria

Shark Tank star Kevin O’Leary gives his fascinatng verdict on Monday’s stock market meltdown – in an exclusive interview with DailyMail.com.

Read it all here.

SHARK TANK -

14:33

Legendary Wall Street predictor makes bold claim about future of the American economy

A financial author and stock market analyst now says the Federal Reserve will be forced to initiate an emergency rate cut ahead of its next meeting in September to tamp down on the widespread selloff of equities in the last several days.

Robert Prechter, the founder and president of Elliott Wave International, joined Neil Cavuto on Fox Business Monday evening and said the Fed missed a huge opportunity at its meeting last week to get ahead of the market calamity that continues to unfold.

‘I think there’s gonna be a surprise rate cut before the September meeting because I think rates have started falling faster,’ he said.

The last time the Fed made emergency rate cuts came back during the early days of COVID, and many experts believe one won’t happen again now because it would signal that the US economy is in terrible shape, possibly leading to even more market scares.

Back in January, Prechter warned that having too much optimism in the market was dangerous. He said Monday that this optimism is now ‘entrenched’ and that the world is seeing ‘the most overgrown market ever.’

8/5/2024: Prominent financial analyst Robert Prechter says he believes the Federal Reserve will make the rare move of implementing an emergency rate cut ahead of its September meeting, reacting to markets reeling in a broad global selloff on Monday. Prechter, the founder and president of Elliott Wave International and the author of

14:31

First hour of trading sees major indices begin rebound

The S&P 500 rose 1.1 percent in the first hour of trading on Tuesday.

The tech-heavy Nasdaq also began to bounce back, up 0.7 percent by 10:30am.

Both indices were dragged 3 percent lower on Monday during a global stock selloff.

NEW YORK, NEW YORK - AUGUST 06: Traders work on the floor of the New York Stock Exchange during morning trading on August 06, 2024 in New York City. Stocks opened up slightly up in the three major indexes a day after the Dow Jones and the S & P 500 had their worst day of trading since 2022, amid a global market sell-off centered around fears of a U.S. recession. (Photo by Michael M. Santiago/Getty Images)

14:21

Bitcoin rebounds from near six-month low

Bitcoin was up 0.6 percent at $54,734, rebounding from a near six-month low of $49,445 touched on Monday.

FILE PHOTO: Representations of cryptocurrency Bitcoin are seen in this illustration picture taken in Paris, France, March 9, 2024. REUTERS/Benoit Tessier/Illustration/File Photo

14:05

Apple shares continue to plunge lower

Apple is having another rough start to the day, with shares down more than 3 percent in the first half hour of trading.

The tech giant’s shares sank more than 6 percent on Monday after Warren Buffet’s Berkshire Hathaway halved its stake in the company followed by news that it had lost a federal antitrust lawsuit.

13:50

US stocks up slightly as markets more stable following selloff

US stocks nudged tentatively higher on Tuesday morning after Monday’s selloff.

The S&P 500 rose 0.5 percent in the first fifteen minutes of trading, but began to dip again.

The tech-heavy Nasdaq rose 0.7 percent.

Both indices were dragged 3 percent lower on Monday in a day of pain for investors.

13:34

NYSE market open: US stocks mostly open green, but many turn red

The S&P 500 rose slightly as markets opened in New York at 9.30am.

12:48

Stocks inch up in erratic trading as investors remain nervous

Global stocks rose in jittery trading on Tuesday, as the uncertainty generated by the previous day’s aggressive selloff weighed on investor sentiment, even though central bank officials said all the right things to soothe nerves.

The Nikkei’s 10 percent rebound in Tokyo overnight delivered an initial sense of relief after the index’s 12.4 percent drop on Monday – its biggest daily sell-off since the 1987 Black Monday crash.

European markets see-sawed, with the pan-regional STOXX 600 bouncing between a daily loss of 0.4 percent and a gain of 1 percent, while U.S. stock futures remained volatile.

S&P 500 futures rose 1 percent, having veered towards the 0-level earlier, while Nasdaq futures were up 1.2 percent.

The S&P 500 lost 3 percent on Monday, while the Nasdaq slumped 3.43 percent, extending a recent sell-off as fears of a possible U.S. recession spooked global markets.

epa11529362 Several screens and panels show the Ibex 35 evolution and other stock information at Madrid's Stock Exchange in Madrid, Spain, 06 August 2024. The Spanish stock market rebounded 0.21% at the opening in an attempt to dispel fears of a recession in the US.  EPA/ANA BORNAY

12:48

European stocks steady, Tokyo soars after rout

European stock markets steadied Tuesday after Asian indices enjoyed some rebounds from a global rout fuelled by US recession fears.

Tokyo, which suffered a record loss Monday, led the gains to close up more than 10 percent as traders bought beaten-down stocks caught up in a catastrophic start to the week for markets.

But analysts warned there would likely be more volatility to come even as Europe’s main stock markets — which had fallen far less sharply Monday than their Asian peers — steadied Tuesday.

Monday’s sell-off followed data Friday showing fewer US jobs than expected were created last month, while another report pointed to continuing weakness in the manufacturing sector.

That led to warnings the US Federal Reserve had kept rates at more than two-decade highs for too long and risked causing a recession.

It meanwhile triggered market speculation that the US central bank could carry out an emergency cut to interest rates ahead of an expected reduction next month.

epa11529352 Pedestrians walk past a display showing the closing information of the Nikkei Stock Average in Tokyo, Japan, 06 August 2024. Tokyo's stock benchmark recorded its largest single-day gain in history, gaining over 3,200 points, after losing over 4,400 points on 05 August 2024, bigger than the 'Black Monday' historic loss in 1987. The Nikkei Stock Average surged 3,217.04 points, or 10.23 per cent, to close at 34,675.46 on 06 August 2024.  EPA/KIMIMASA MAYAMA

Key Updates

  • First hour of trading sees major indices begin rebound

  • Apple shares continue to plunge lower

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