‘Don’t be a hero’: Why some market watchers are reluctant to call a bottom despite big rally for stocks
The fear was real. Wall Street was ready to celebrate the passing of a US$2 trillion stimulus package, but after partisan bickering on Sunday and again on Monday left the bill in limbo, investors panicked. With the Democrats and Republicans incapable of setting their differences aside while an economic depression loomed, stocks were not the place to be.
So for the first time since 2016, investor selling pushed the Dow Jones Industrial Average below 19,000 points — to an intraday low just above 18,200 — eliminating all the returns the index had made since the night U.S. President Donald Trump was elected. Some of the biggest names in corporate America plunged to levels not seen in years, with aerospace giant Boeing Co. among the most worst hit, trading below US$90 for the first time since 2013.
Then, a glimmer of hope changed things. The two political parties finally found common