Many market analysts warned that this month would be volatile, due to the historical downturn that occurs in October. The upcoming midterm elections are only adding to market uncertainty, and it may be more than a week before investors start to see more stability, and a possible rally at the end of the year.
On Monday, the NASDAQ had its worst day in three years, while the Dow Jones had the biggest reversal since February.
NASDAQ Down -1.63% on Monday
The NASDAQ has been one of the biggest growth platforms for investors this year.
However, Monday wasn’t so great for the exchange, with significant losses coming from Tower Semiconductor Ltd. (NASDAQ: TSEM), down -21.56%, and Ameri Holdings Inc. (NASDAQ: AMRH), down 21.56% by the time the market closed.
Reshape Lifesciences Inc. (NASDAQ: RSLS) was the worst performer of all, falling 27.88% during the day.
The strongest performer on the exchange was Dolphin Entertainment Inc. (NASDAQ: DLPN), a media industry marketing company that gained 28.39% over the day. However, being a small cap bargain stock, this was not enough to offset the total slide.
Dow Jones Market Suffers -0.99% Decline
The Dow Jones Industrial Average had a smaller but still significant decline, but not every stock was a loser. Some key retail, communications, pharmaceutical, and finance stocks helped to limit the damage on this benchmark index.
Verizon Communications (NYSE: VZ) was the biggest grower, ending Monday up 1.75%. Pfizer Inc. (NYSE: PFE) also performed well, ending 1.48% in the green. Other gainers above one percent included Goldman Sachs Group Inc. (NYSE: GS), Coca-Cola Co. (NYSE: KO), JP Morgan Chase & Co. (NYSE: JPM), and Merck & Co. (NYSE: MRK).
The gainers indicate that there are still good picks for investors who are making short term trades.
Look for the Bargains and Invest Conservatively
October is a risky month for long term investors who are thinking about growth or even retirement. Most analysts believe that volatility should now start to taper off, and things could get much better after the November 6 elections. Future performance can never be guaranteed, but history does show that the market is likely to recover again.
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