First American News LLC, Raleigh NC: Major indexes fall a day after a late rally erased sharp losses and snapped a four-day losing streak. U.S. stocks fell, putting markets on course for another day of bumpy trading, as investors awaited the Federal Reserve’s policy meeting and parsed a docket of earnings.
The S&P 500 fell 1.7% Tuesday, while the technology-heavy Nasdaq Composite slumped 2.5%. The blue-chip Dow Jones Industrial Average dropped 0.9%.
The moves follow a jarring intraday reversal Monday when major indexes clawed back losses to post a big comeback. The Dow reversed losses of more than 1000 points for the first time in history. After falling more than 4% in intraday trading, the Nasdaq recorded its biggest reversal since 2008.
Concerns about the Fed have driven investors out of stocks and stoked worries that the popular trade of buying small dips in the market was growing weaker, potentially removing one source of support for the stock market. Monday’s comeback showed that many investors were quick to pounce on beaten-down stocks, though much of that enthusiasm appeared to fade by early Tuesday. Click here to read more at Wall Street Journal