The best advice about the stock market this week comes from the Wall Street Journal’s Jason Zweig.
“Stop trying to make sense of the stock market,” Zweig writes.
U.S. stocks fell by more than 500 points at the open after stocks sold off around the world and futures indicated another leg downward.
Then they rose. The Dow Jones Industrial Average gained 350 points. The S&P 500 rose 1.2 percent, with technology stocks leading the way up. The Nasdaq Composite rose 1.4 percent. Shares of Google’s Alphabet, Amazon, Facebook, and Netflix were all up by more than 1 percent. Apple rose by more than 2 percent.
Those early gains probably won’t last. Traders who bought the weakness of the open will sell, pocketing their instant profits. In fact, they already haven’t lasted. The Dow retraced some of its gains in the first hour of trading, to be up by around half a percentage point.
Why were stocks rising Tuesday? The smartest answer is Zweig’s: “Stop trying to make sense of the stock market.”