After The Bell: Stocks Claw Their Way Back

Andy Giersher
December 06, 2018 - 6:23 pm

CHICAGO (WBBM NEWSRADIO) -- It was a turnaround day on Wall Street, as stocks closed well off their session lows following word the Federal Reserve could tighten monetary policy at a slower pace than previously expected.

The Dow Jones industrial average closed down 77 after plunging over 780 points at session lows, while the S&P 500 shed 4. The tech-heavy NASDAQ overcame its early losses and closed nearly 30 points higher for the day.

"There are certainly a number of news items that you could point to, but unless investors really sense that the Federal Reserve is backpedaling, I really don't see what people are hanging their hats on,” Jack Ablin, chief investment officer at Cresset Wealth Advisors in Chicago, said.

“But on the other side, I'm not sure how much they wanted to really take the market down to begin with.”

He adds that the prominence of algorithmic trading, that tends to be trend following, has also played into the recent volatility.