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Bounce back. Stocks opened higher this morning after a big reversal Tuesday afternoon. New York, New Jersey, Louisiana, and Illinois all reported their highest daily death tolls on Tuesday, but the number of new cases and new hospital admissions in hot spots continued to decline. Additionally, Europe continues to see fewer new cases, and Chinese authorities in Wuhan ended the 76-day lockdown, allowing citizens to move freely around what was the epicenter of the virus outbreak.
Big reversal. Tuesday, stocks were up significantly at the start of the day, with the S&P 500 Index up 3.5%, before reversing and closing lower. This type of large reversal is extremely rare—2008 was the last time we saw a reversal like this. At the peak Tuesday, stocks were up more than 20% from the March lows, so this intraday weakness could be the start of near-term potential weakness.
Fed minutes to be released. Minutes from the March Federal Reserve meetings are in some respects old news, but investors still may search for context and insights. Scheduled for release at 2 p.m. ET today, the minutes will include two emergency meetings that ultimately led to cutting rates back to zero, as well as the initiation of unprecedented bond purchases.
Big down years are rare. Since 1950, the S&P 500 Index has suffered calendar year losses of more than 15% only four times: 1973, 1974, 2002, and 2008. With the S&P 500 down 18% year to date, we take a look at how likely a big down year for stocks could be today on the LPL Research blog.
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