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Stocks (^DJI, ^IXIC, ^GSPC) end Tuesday's session higher in a slow recovery from Monday's widespread sell-off. The S&P 500 and Nasdaq Composite both rose by 1.03%.
Julie Hyman recaps the day's performances of the major market averages, taking note of the volatility index (^VIX) and trends in the Japanese yen (JPY=X).
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This post was written by Luke Carberry Mogan.
Let's start with where the major averages ended the session, because we did not see recouping of yesterday's losses, but we did see a bounce here. So the Dow up almost 300 points, about three quarters of 1%. If you pull that back to two days, you see that it hasn't recouped the losses. It's still down about 1.9%. And you look over the past 10-day period, you can see that sell-off a little bit more acutely here. If you look at the S&P 500, similar story here. We're recovering a percent on the day here, but over the two days, still down 2%. Nasdaq, same story here, down 2.4%, but it did rebound today by about 1% as well. We also saw this whipsawing happening in the VIX that we've been talking about, with that big increase that we saw yesterday, just to come right down today again. So we've been asking a lot of questions about whether this this sort of tantrum, as one of our guests called it yesterday, is going to continue. And obviously, we don't know if it's going to continue. We shall have to see. As for the Japanese yen, which we've been watching closely as well, a little bit of stability as well there today, and some speculation that the Bank of Japan, whose sort of increase in rates last week sort of set off this carry trade unwinding that we have been talking about, there has been some speculation that the Bank of Japan might reverse that at some point. Again, we'll see if that happens, but for now, things stabilizing, at least for today.