Stocks dip after surprising rally
by Kyle Ziemnick
Posted 6/09/20, 04:21 pm
The S&P 500 reached an overall positive gain for the year on Monday despite a confirmed recession due to the coronavirus pandemic. But stocks around the world dropped on Tuesday, signaling caution from investors after a dramatic rise over the past two weeks. Some investors worry about a potential second wave of coronavirus cases, rising tensions with China, and the upcoming U.S. presidential elections.
Why did stocks jump? The market had begun to recover as countries reopened their economies. Then, a report last week from the U.S. Labor Department showed an unexpected gain of 2.5 million jobs and a drop in the unemployment rate in May. Stimulus packages and interest rate cuts also boosted the Dow Jones Industrial Average.
Dig deeper: Listen to Nick Eicher and financial analyst David Bahnsen discuss the latest employment figures and other economic news on The World and Everything in It.
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Kyle is a graduate of the World Journalism Institute.