Losses pared in possible rebalancing push
The S&P 500 was down 4.2% at its lows seen shortly after the start of today's trading. It is now down just 1.0%, having forged a choppy, but ultimately progressive rebound effort.
News this afternoon that the House passed the $2 trillion fiscal stimulus package without any undue delay has been regarded as a positive development, which it is as it clears the way to start the process of getting badly needed aid that so many businesses and people need.
The push off this morning's lows, though, started before there was an assurance that the House could get that bill passed following a more expeditious-minded voice vote.
That push was presumably a function of quarterly rebalancing activity that resumed after the initial dive. The major indices are currently near their best levels of the day, either because of the rebelancing efforts or because of a pickup in buying interest that has been fueled by the market's resilience to earlier selling efforts -- or both.
In any event, the recovery try has been encouraging, although there is a clear defensive-oriented edge to it, evidenced by the outperformance of the utilities (+3.8%), real estate (+2.3%), and consumer staples (+2.0%) sectors. They are also the only sectors in positive territory at this juncture.
The S&P 500 is down 1.0%; the Nasdaq Composite and Dow Jones Industrial Average are down 1.4%; and the Russell 2000 is down 2.4%.
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