September greets Wall Street with a sucker punch as markets fell Tuesday. Investors approached the month’s beginning with caution as many sees that the six-month stocks surge has overshot economic recovery.
The Dow Jones fell almost 2% or 186 points. The Standard & Poor 500 lost 2.2% or 23 points while tech-heavy Nasdaq dropped 2% or 40 points.
Over the past few months, investors saw better-than-expected reports as signs of the recession bottoming out and that a recovery is in sight. However, despite more of such reports on housing manufacturing surfaced, investors approached them with caution.
Stocks have essentially been on the rise since March, as investors have welcomed extraordinary fiscal and monetary stimulus and signs that corporate profits and the economy have stabilized. The major gauges ended last week at the highest levels in 9 to 10 months.
Source: CNN
