Markets attempt rebound: What investors are buying
The markets attempted a rebound on Tuesday, following the steep sell-off Monday that saw the Dow Jones industrial average post its largest point drop on record and its largest percentage decline since August 2011.
With the markets poised for a rebound, certain stocks were higher, including Apple (NASDAQ:AAPL), Caterpillar (NYSE:CAT), Chevron (NYSE:CVX), JPMorgan (NYSE:JPM), General Electric (NYSE:GE), Home Depot (NYSE:HD) and DowDuPont (NYSE:DWDP).
While the market move on Monday may have come as a surprise to individual investors, analysts were not surprised, calling the fall “overdue.”
“From Nov. 15, 2017, through Jan. 26, 2018, the S&P 500 Index rose 12%; this nearly vertical move higher couldn’t last forever," Scott Wren, senior global equity strategist at Wells Fargo’s Investment Institute, told FOX Business. "On average, since 1928, the index has a 10% pullback approximately every 11 months. We have not had a 10% pullback in that index since late 2015/early 2016.
“We continue to recommend that investors overweight the industrials, consumer discretionary and financial sectors," Wren added. "These sectors are sensitive to the ebb and flow of the economy and should continue to benefit from the ongoing expansion we envision.”