NATIONAL NEWS

Dow jumps 600 points as stocks bounce back from worst week in over two years

Jun 21, 2022, 3:02 PM | Updated: Jun 25, 2022, 8:52 pm
U.S. stocks roared back on June 21 in the first day of trading since the market's worst week since ...
U.S. stocks roared back on June 21 in the first day of trading since the market's worst week since March 2020. (Spencer Platt/Getty Images via CNN)
(Spencer Platt/Getty Images via CNN)

(CNN) — U.S. stocks roared back Tuesday in the first day of trading since last week’s selloff.

The Dow closed up 641 points, or 2.1%, and was up over 700 points in afternoon trading. The S&P 500 was up 2.5% and the Nasdaq was also 2.5% higher.

Last week was the market’s worst week since March 2020.

The holiday-shortened week swung to the upside in Tuesday trading as oil prices and other commodities appeared to swing back in price, increasing investor sentiment and the hope that the Federal Reserve’s actions to rein in inflation without causing a near-term recession may be working.

Oil prices gained a bit Tuesday, but the benchmark Brent crude now sits about $10 below its recent highs. Gas prices have dipped below $5 a gallon, a small relief. The price of iron ore and copper also have fallen. President Joe Biden, meanwhile, will fly to Saudi Arabia this week to discuss boosting energy production.

Bitcoin rose back above $21,000 after a major drop in cryptocurrency sent prices below $18,000 over the weekend. Treasury yields also climbed, the 10-year yield increased to 3.3%.

Tuesday’s comeback was broad, with nearly all members of with the S&P 500 seeing upward growth.

Large bounces are common during bear markets. The S&P 500 has grown by more than 2% on 10 other occasions since its last peak in January but has given up the gains and traded lower each time, according to Sam Stovall, chief investment strategist at CFRA Research.

U.S. stocks rose tepidly on Friday but still managed to log large losses last week after the Federal Reserve announced that it would increase interest rates by three-quarters of a percentage point, the largest hike in 28 years, in an attempt to tame inflation rates. Fed Chair Jerome Powell told Americans on Wednesday that he wasn’t sure if it would be possible to lower inflation without dampening the US economy.

“I think that what’s becoming more clear is that many factors that we don’t control are going to play a very significant role in deciding whether that’s possible or not,” he said.

The S&P 500 lost almost 6% last week, posting its worst week on record since 2020. The Dow plummeted 1,504 points, or about 5%.

The Fed is in the spotlight again this week. Powell will appear before the Senate Banking Committee on Wednesday and the House Financial Services Committee on Thursday as part of his semi-annual testimony to Congress about the Fed’s work. With little other economic or earnings data, investors will likely look to his testimony to gauge their sentiment going forward.

U.S. stocks have fallen into a bear market, tumbling more than 20% since hitting a record high January 3. But stocks may have plenty more room to fall — particularly if economists’ predictions come true and the US economy slides into a recession.

Recessions are not kind to investors. Bear markets during recessions have historically been longer and deeper than bear markets that weren’t associated with economic downturns, notes Stovall. Since World War II, stocks have fallen 28% in bear markets without recessions — and 36% in those during recessions.


The-CNN-Wire™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

KSL 5 TV Live

Top Stories

National News

Prince Harry and Meghan, Duchess of Sussex walk as procession with the coffin of Britain's Queen El...
Associated Press

Harry and Meghan doc footage puts royal rift at forefront

Footage of an upcoming documentary about Harry and Meghan shows the couple is once again prepared to address their rift with the royal family directly and in their own words.
10 hours ago
[FILE] Jail Handcuffs (KSL-TV)...
Michael Houck

Utah man pleads guilty to child pornography charges in Virginia

A Cedar City man has pleaded guilty to child pornography charges after sending explicit videos to an undercover FBI agent in Virginia.
1 day ago
Kevin Johnson is shown at the Clayton Courthouse Tuesday, April 3, 2007, in Clayton, Mo....
Dakin Andone, CNN

Man who murdered police officer in 2005 has been executed in Missouri

Kevin Johnson -- a death row inmate who was convicted in the 2005 murder of a Kirkwood, Missouri, police officer but claimed racial bias in his prosecution -- was executed Tuesday night by lethal injection.
1 day ago
A tree is down on top of a trailer home....
Amir Vera, Jason Hanna, Melissa Alonso and Aya Elamroussi, CNN

At least 2 killed in Alabama as severe storms and tornadoes sweep across the South

Severe storms and tornadoes swept through parts of the South from Tuesday into Wednesday morning, killing at least two people in Alabama and damaging homes, other buildings and downing trees in several states, officials said.
1 day ago
A police officer making an announcement behind a podium for the San Francisco Police Department...
JANIE HAR Associated Press

San Francisco will allow police to deploy robots that kill

The Democratic San Francisco Board of Supervisors voted to allow police to use potentially lethal, remote-controlled robots in emergency situations. The vote Tuesday was 8 to 3. Civil rights advocates opposed the proposal, saying it would lead to further militarization of police. The San Francisco Police Department said it would like the option to deploy robots equipped with explosive charges to disable suspects when lives are at stake. The San Francisco Board of Supervisors is divided on support for law enforcement. A new state law requires police and sheriffs departments to inventory its military grade equipment and seek approval for their use.
1 day ago
NASHVILLE, TN - JUNE 07:  Danny Masterson speaks during a Launch Event for Netflix "The Ranch: Part...
BRIAN MELLEY and ANDREW DALTON, Associated Press

Mistrial declared in actor Danny Masterson’s rape trial

A judge has declared a mistrial at the rape trial of “That ’70s Show” actor Danny Masterson.
1 day ago

Sponsored Articles

house with for rent sign posted...
Chase Harrington, president and COO of Entrata

Top 5 reasons you may want to consider apartment life over owning a home

There are many benefits of renting that can be overshadowed by the allure of buying a home. Here are five reasons why renting might be right for you.
Festive kitchen in Christmas decorations. Christmas dining room....
Lighting Design

6 Holiday Decor Trends to Try in 2022

We've rounded out the top 6 holiday decor trends for 2022 so you can be ahead of the game before you start shopping. 
Happy diverse college or university students are having fun on their graduation day...
BYU MBA at the Marriott School of Business

How to choose what MBA program is right for you: Take this quiz before you apply!

Wondering what MBA program is right for you? Take this quiz before you apply to see if it will help you meet your goals.
Diverse Group of Energetic Professionals Team Meeting in Modern Office: Brainstorming IT Programmer...
Les Olson

Don’t let a ransomware attack get you down | Protect your workplace today with cyber insurance

Business owners and operators should be on guard to protect their workplace. Cyber insurance can protect you from online attacks.
Hand turning a thermostat knob to increase savings by decreasing energy consumption. Composite imag...
Lighting Design

5 Lighting Tips to Save Energy and Money in Your Home

Advances in lighting technology make it easier to use smart features to cut costs. Read for tips to save energy by using different lighting strategies in your home.
Portrait of smiling practitioner with multi-ethnic senior people...
Summit Vista

How retirement communities help with healthy aging

There are many benefits that retirement communities contribute to healthy aging. Learn more about how it can enhance your life, or the life of your loved ones.
Dow jumps 600 points as stocks bounce back from worst week in over two years