In a volatile session of trading, stocks fell on Tuesday with big tech stocks zapping the light of a 4-day rally spurred by news of the possible reopening of the economy.
On Monday, the Dow closed higher than 24,000 for the first time since mid-April. The S&P 500’s gains on Monday placed it on track to have its largest one-month gain since 1987, surging 11.4 percent this month.
Meanwhile, news of partial reopenings of the economy in some states had boosted investor sentiment. Texas, Alaska, Georgia, South Carolina, and other states announced that some U.S. businesses could reopen and emerge from the quarantine put in place by COVID-19.
Stocks benefitting from a partial reopening initially led to higher share prices on Monday and early Tuesday. Kohl’s shares were 10.7 percent higher, while bank shares of JP Morgan and Citigroup rose above 0.7 percent each.
But sell-offs ensued on Tuesday. Stocks started off on a positive note and were at least 1 percent higher earlier, but the momentum didn’t last. The Dow closed 0.1 percent, or 32.23 points lower, and ended the trading session at 24,101.55. The Nasdaq also fell by 1.4 percent and ended at 8,607.73, while the S&P 500 dropped by 0.5 percent and ended the day at 2,863.39.
Big Tech also saw losses with Netflix shares falling by 4.2 percent and Alphabet, Amazon, and Apple trended downward at 3 percent, 2.6 percent, and 1.6 percent respectively.
Amazon, Apple, Facebook, and Microsoft are on schedule to report earnings later in the week, which could further impact share prices.
Overall in the past week, the three major indexes are up by more than 4 percent. PVH Corp, the parent company of Tommy Hilfiger, saw shares rise 28 percent higher over the past week. Expedia and Nordstrom also rallied over the past week by 25 percent and 23 percent respectively.
Some investors remain bullish on reopening the economy as more than 26 million people have lost jobs. Meanwhile, Wall Street is waiting to hear the Federal Reserve’s latest monetary policy which is scheduled to be announced at 2 p.m. on Wednesday.