Kohl’s, Gap, And Domino’s Rally On A Roller Coaster Monday

Kohl’s, Gap, And Domino’s Rally On A Roller Coaster Monday

Stocks started the week in a downslide, with the S&P 500 (SPX) falling nearly 4% after the open. However, small-caps stocks started the intraday recovery with the Russell 2000 (RUT) bouncing off its morning lows after falling 5. 5% in the morning. The small-cap index rallied back into positive territory and closed 2. 29% higher thanks in large part to energy stocks. The S&P 500 and the Nasdaq Composite ($COMP) were also able to bounce off their lows to close in positive territory. The massive sell-off and recovery could be the sign of capitulation that investors have been hoping for. When finally backed into a corner with what appeared to be real panic selling, bargain hunters seem to have stepped in and started buying. It could also be a good sign that investors started their bargain hunting with the riskier small-cap stocks demonstrating that these stocks have fallen to valuations where the risk is low enough to make the companies worthwhile. Even bitcoin rallied to positive territory alongside small caps, reflecting the change in appetite for risk. Hopefully, over the next week, the larger companies can demonstrate greater strength. They could get some help from Dow Jones Industrial Average ($DJI)