LPL Financial closed April 10. Please note the stock and bond markets and LPL Financial will be closed Friday, April 10. We will return to our normal business schedule Monday, April 13.
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.
This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change.
References to markets, asset classes, and sectors are generally regarding the corresponding market index. Indexes are unmanaged statistical composites and cannot be invested into directly. Index performance is not indicative of the performance of any investment and do not reflect fees, expenses, or sales charges. All performance referenced is historical and is no guarantee of future results.
The modern design of the S&P 500 stock index was first launched in 1957. Performance back to 1950 incorporates the performance of predecessor index, the S&P 90. All indexes are unmanaged and cannot be invested into directly. Past performance is no guarantee of future results.
All index data is from FactSet.
Any company names noted herein are for educational purposes only and not an indication of trading intent or a solicitation of their products or services. LPL Financial doesn’t provide research on individual equities. All information is believed to be from reliable sources; however, LPL Financial makes no representation as to its completeness or accuracy.
This Research material was prepared by LPL Financial, LLC.
Insurance products are offered through LPL or its licensed affiliates. To the extent you are receiving investment advice from a separately registered independent investment advisor that is not an LPL affiliate, please note LPL makes no representation with respect to such entity.
- Not Insured by FDIC/NCUA or Any Other Government Agency
- Not Bank/Credit Union Guaranteed
- Not Bank/Credit Union Deposits or Obligations
- May Lose Value
For Public Use – Tracking 1-979726