A few reasons. A surge in the coronavirus cases and news that Texas and Florida will take precaution and safety measures, news that banks will face restrictions set by the Fed related to dividends and share buybacks for the third quarter, and a miss for the University of Michican consumer sentiment index.
At 4:24 PM, ET time the 10-year bond yield was at 0.7330-0.0230 (-3.04%).
Enphase Energy, Inc. (ENPH) stock plunged today falling more than 25%, with a stock price of 39.04-13.72 (-26.00%). Carver Bancorp, Inc. (CARV) stock gained more than 200%, closing at 8.39+5.98 (+248.13%). Atlas Financial Holdings, Inc. (AFH) stock was among stock gainers today, having a stock quote of 1.2000+0.7829 (+187.70%).
Stock market data: All stock prices, stock quotes taken from Yahoo Finance, stock prices at the close.
Stock market today closed higher, as economic news was supportive of an improvement in the economic outlook
The US stock market closed higher today, Dow Jones gained more than 500 points. Stronger than expected retail sales data and reports of further economic stimulus related to infrastructure were the two main catalysts that sent the major stock indices higher today.
The latest stock futures data point to lower open for the stock market today. The main reasons for this lower open today for the stock market could be due to the following reasons:
“Stock futures sank Sunday evening as investor jitters over rising coronavirus cases in key parts of the country stirred up an extension of last week’s pullback in equities.
Last week, stocks posted their first weekly loss in a month, with a steep selloff on Thursday comprising much of the weekly decline. The plunge, which came on the heels of a more than 40% run-up in the S&P 500 since March, came after new data showed rising coronavirus case and hospitalization counts in states that were among the first to reopen businesses, and after the Federal Reserve delivered a grim forecast for economic activity in the near-term.
Market participants continued to eye coronavirus cases across the country for signs of resurgences.”
The US retail sales and industrial production figures are important economic indicators about the state of the US economy. As the US stock market made an impressive rebound off the lows in March 2020 in a period of uncertainty, fear, bad economic news, ignoring an almost certain economic recession, the fact that there is now profit-taking is justified. Investing in stocks is about knowing when to make money and book profits. Stock market volatility may be a dominant theme during summer, expecting further important economic news such as the GDP growth rate.