- S&P 500 jumps 3.8% from its lows in frenzy of late-day buying
- The last hour of trading is ‘where professional money is’
Wall Street mouths were again agape at the sight of frantic moves in equities. The S&P 500 climbed 3.8 percent from its lows, turning on a dime at about 2:20 p.m. in New York, while the Dow Jones Industrial Average swung 871 points straight up.
Here’s what investment advisers say they saw.
Nancy Tengler, chief investment strategist at Tengler Wealth Management, which has around $450 million under management:
“There’s a couple of things going on: one is that the tax-loss selling is most likely done. People, like me, who try to do it for clients, tried to do it last week. That improves liquidity in markets. There’s buyers and typically what we see in a normal market if people believe the economy is sound and that earnings will be decent, is they’ll tend to buy the dip. We saw some of that today. There was no major news that prompted the reversal. And buyers tend to come in at the end of the day, especially with program buyers. That’s a lot of what we’re still seeing,” she said. “Some people said this is what bottoms look like. I don’t know if we are at the bottom yet. I’m not saying we’re not, but sellers are drying up because of tax loss harvesting and you have end-of-the-day buyers coming in. I had a sense we’d end up today, but you certainly never know.”