Why the stock market had such a tumultuous Monday

Published: Jan. 24, 2022 at 9:15 PM CST
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BISMARCK, N.D. (KFYR) - On Monday, the stock market had one of the most volatile days since March of 2020.

After being down more than 1,100 points this morning, the Dow Jones Industrial Average staged a stunning comeback. Around lunchtime, Your News Leader was interviewing residents to see if they were concerned with the market’s struggles in recent days.

“Anytime it drops, it’s a loss, but you know, stock markets are for the long-term, there’s no short-term in the stock market,” said Marilyn Luebke of Bismarck.

By 3 p.m., the numbers on Wall Street were completely different. The market rallied and gained more than 1,200 points to end the day in the green. Experts say the volatility is caused by multiple factors.

“Number one, the geopolitical tensions in the world with Russia and Ukraine make people scared. And then you’ve got inflation that’s at 30-year highs and interest rates that are probably going to be going up as the Feds meet this week to discuss their policy. So, you put all of those things together, and it doesn’t make people feel very well,” said David Wald, president of Securian Financial Advisors of North Dakota.

The Wall Street roller coaster hasn’t deterred investors like Marilyn.

“Well, if you invest money, that’s what you’re doing. You’re investing, and you have to ride it out,” she said.

Good thing for her, because Marilyn’s financial perspective seems to be in line with advice from experts.

“Don’t panic and take a look at your portfolio and assess where you are. What gets us through these markets always is good asset allocation. For your age, timeframe, and how you feel about risk, are you invested appropriately?” said David Wald.

As for the immediate future, investors are eyeing the Fed’s policy meeting, where they’ll determine how much to raise interest rates this year.

Despite Monday’s rebound, both the Dow and S&P 500 are on pace for their worst month since March 2020. The Nasdaq, meanwhile, is still headed for its biggest one-month loss since October 2008.

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