Black Monday, it certainly wasn't. But the 33rd anniversary of Wall Street's worst-ever trading day was nonetheless marked with red ink.
Investors continue to eye COVID stimulus negotiations, which now have a deadline. House Speaker Nancy Pelosi has said that an agreement must be reached by Tuesday to get a bill passed before the November elections. (The Kiplinger Letter's up-to-the-minute forecast: Don't count on relief passing the House and Senate prior to Nov. 3.)
Meanwhile, the U.S. on Friday recorded 68,000 new COVID-19 cases – the country's highest daily total since July – fueling concerns of a long-discussed "second wave" as we approach winter.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The Dow Jones Industrial Average was actually 105 points (0.3%) higher in early trading, but it quickly flipped to losses that accelerated in the afternoon, culminating in a 1.4% loss to 28,195. Apple (AAPL, -2.6%) and Johnson & Johnson (JNJ, -2.6%) were the industrial average's steepest decliners, but the Dow 30's pain was widespread – every Dow 30 component but Intel (INTC, +0.8%) finished lower.
Other action in the stock market today:
- The S&P 500 declined 1.6% to 3,426.
- The Nasdaq Composite shed 1.7% to 11,478.
- Small caps were less dreary, with the Russell 2000 off 1.2% to 1,613.
Buckle Up
No matter how Washington's negotiations turn out, you can expect Wall Street to react with vigor. But from an investing standpoint, understand that "no deal" likely doesn't mean forever ... it probably just means not right now.
"We believe that the probability of a package pre-election is very small and that a bill is unlikely before the end of 2020," writes the Wells Fargo Investment Institute. "Our view is the best chance for an economic support program is in the first quarter of 2021. By then, a package of (conservatively) $2.0 trillion appears likely – possibly more if Democrats control both chambers in the new Congress."
If you can't stand the thought of another herky-jerky ride, you can look to bond funds to provide a counterbalance, or you can always raise a little cash and look for new opportunities once the dust has settled. But for most, we suggest worrying less about the next two days, and game-planning for the next few decades.
That's the idea behind these 10 buy-and-hold mutual funds. This group of products has something for everyone – core stock holdings, sector-specific plays and, of course, fixed income – but they all have a few traits in common, including low expenses and proven track records. Take a look.
-
Stock Market Today: Stocks Step Back From New HighsInvestors, traders and speculators continue the low-volume summer grind against now-familiar uncertainties.
-
Ask the Editor — Tax Questions on the New Senior DeductionAsk the Editor In this week's Ask the Editor Q&A, we answer tax questions from readers on the new $6,000 deduction for taxpayers 65 and older.
-
Stock Market Today: S&P 500, Nasdaq Hit New Highs on Retail Sales RevivalStrong consumer spending and solid earnings for AI chipmaker Taiwan Semiconductor Manufacturing boosted the broad market.
-
If You'd Put $1,000 Into Berkshire Hathaway Stock 20 Years Ago, Here's What You'd Have TodayBerkshire Hathaway is a long-time market beater, but the easy money in BRK.B has already been made.
-
Stock Market Today: Powell Rumors Spark Volatile Day for StocksStocks sold off sharply intraday after multiple reports suggested President Trump is considering firing Fed Chair Jerome Powell.
-
Stock Market Today: Nasdaq Hits a New High as Nvidia SoarsA big day for Nvidia boosted the Nasdaq, but bank stocks created headwinds for the S&P 500.
-
If You'd Put $1,000 Into Procter & Gamble Stock 20 Years Ago, Here's What You'd Have TodayProcter & Gamble stock is a dependable dividend grower, but a disappointing long-term holding.
-
Stock Market Today: President Trump Reboots the Tariff TradeA broad consensus that markets hate uncertainty more than anything else is being tested on an almost daily basis in 2025.
-
Stock Market Today: Stocks Stable as Inflation, Tariff Fears EbbConstructive trade war talks and improving consumer expectations are a healthy combination for financial markets.
-
Stock Market Today: "Good Trump" Gives Dow 740-Point BoostFriday's headwind was Tuesday's tailwind, as President Trump's social media posts continue to drag and drive financial markets.
