It looked like we would be seeing more of the same on Wall Street; weakness, especially in growth and tech. Around noon, the Invesco QQQ Trust Series 1 (NASDAQ:QQQ) was trading down more than 4% from Friday’s close, a severe sell-off even in these recent bear market conditions.
Not So Fast: But the day was not over yet. In a complete reversal during a strong final hour, the QQQs would rally more than 4% to finish in the green on the day. With the QQQs, Bitcoin also reversed and ended up rallying more than 10% intraday.
The Dow Jones Industrial Average closed at 34,364.50, marking a 1,000-point recovery for the day. The S&P 500 closed at 4,410.13.
See Also: As Fear Grips The Market, Here's Why 3 Bellwether ETFs Look Set To Bounce
At its low of the day, Bitcoin hit right around $33,000 before rallying to $37,000. Like the QQQs, the SPDR S&P 500 Trust (NYSE:SPY) was down more than 3% at one point on Monday and ended closing in the green.
Why The Rally? Many traders are hesitant to buy the dip before the Fed’s FOMC meeting on Wednesday. Monday's late move shows that buyers are out there, and this recent pullback may have been a little too much, a little too fast.
While today’s market action was encouraging, it's too early to tell if this is a reversal and stocks are back in an uptrend.
