Stocks Sag on Virus Fears, But Markets Avoid Further Crash

By:
Chris Gaetano
Published Date:
Jun 15, 2020
Stocks started this morning in a dismal place, with Wall Street still working off Friday's hangover, but so far they seem to have pared many of these losses, so that they were only slightly down.

As of 2:24 p.m. the Dow Jones Industrial Average was up by 258 points, the S&P 500 was up by 36 points and the Nasdaq was up by 156 points.

The Wall Street Journal said that today's losses were offset largely by nonprofessional retail traders who opportunistically bought flailing stocks at a bargain, helping to stabilize losses borne from a new round of infections as parts of the economy reopen. However, the Journal noted, investors in general have become more bullish in recent weeks, citing a poll that found the proportion of those optimistic about the stock market rose from 24 percent in April to 34 percent this month.

CNN Money
added that many were also encouraged by news that the Federal Reserve had expanded the terms for its program for buying corporate debt on the secondary market. The central bank plans to "create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds" that will be "made up of all the bonds in the secondary market that have been issued by U.S. companies that satisfy the facility's minimum rating, maximum maturity, and other criteria." The Fed added, "This indexing approach will complement the facility's current purchases of exchange-traded funds."

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