Markets rebounded Tuesday. A tumultuous September for equities caused bargain hunters to take advantage of oversold conditions Tuesday, snapping a four-day losing streak for the S&P 500 Index. House Democrats and the White House reached a tentative deal to avoid a Government shutdown, but a stimulus plan may still be a long ways off. European stocks are firmly higher in afternoon trading, while Asian markets finished overnight mixed.
Today marks 6 months from March lows. Today marks six months from the March 23 S&P 500 low. We take a look at how this recovery ranks against other historical bottoms and where we could go from here later today on the LPL Research blog.
Technical update. Growth stocks led a market rebound Tuesday, pushing the S&P 500 up 1.1% and the Nasdaq more than 1.7%. First support for the S&P 500 can be found near 3200, while the February highs at 3393 may come back as resistance on any future rallies.
COVID-19 news. New cases in the United States jumped 20% week over week Tuesday, pushing the seven-day average over 43,000, which is 16% higher than the prior week (source: COVID Tracking Project). Hospitalizations have fallen 6.5% week over week and have leveled off, but may follow daily cases higher. The US death toll for the virus tragically has surpassed 200,000. The Food and Drug Administration (FDA) is expected to release more stringent standards for emergency authorization of a COVID-19 vaccine.
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