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The S&P 500, Nasdaq just staged a turnaround for the ages, marking their largest comebacks since the 2008 financial crisis

MarketWatch
MarketWatch
 2022-01-24
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Hector Retamal/AFP/Getty Images

It’s a Wall Street comeback for the history books, one that would make the National Football League’s Tampa Bay Buccaneers signal caller Tom Brady green with envy.

The Nasdaq Composite Index

COMP,

+2.41%

just finished in positive territory, up 0.6% in a whipsaw session, after being down by as much as 4.9% at Monday’s nadir, with that turnaround marking the largest comeback to end in positive territory since Oct. 10, 2008, according to Dow Jones Market Data.

And the S&P 500 index

SPX,

+1.50%

, which was down 3.99% on Monday, finished up 0.3%, to mark the sharpest snapback after being down to end positive since Oct. 23, 2008.

It wasn’t clear if the U-turn for the beleaguered technology index and broad-market S&P 500 bode well for the outlook for volatility in the market, but it might provide a modicum of solace to bulls who were looking at another punishing day in equities until they weren’t.

At one point, the Dow Jones Industrial Average

DJIA,

+0.90%

, which closed up nearly 100 points, or 0.3%, was down 1,115.04 points, or 3.3%, on the session.

There was no specific catalyst for the intraday turnaround, but it came as parts of the market saw so-called oversold conditions. The Dow industrials, for example, produced a seven-day plunge that marked its most oversold reading in a key technical indicator in nearly two years, which can sometimes result in bargain hunting by speculative investors and technical traders look for opportunities.

The turbulence in markets also come as investors are bracing for a Federal Reserve meeting Tuesday and Wednesday, in which the central bank is expected to shed more light on its tactics to combat surging inflation. The market has also been spooked by mounting tensions between the West and Russia over the military buildup on the border with Ukraine.

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