Just one day after the Dow Jones industrial average hits an 18-month high, the stock market saw major fluctuations. The good financial news came after the successful passing of the health care reform, but then began to drop again in anticipation of a key housing market report.
18-Month Highs to Go Around on Monday
With news that the health care reform bill had passed on Sunday night, the stock market saw some significant gains. The Dow Jones industrial average in particular rose 44 points (0.44 percent), ending with an 18-month high.
The S&P 500 index also had a good day, gaining 6 points (0.5 percent) which left it just shy of the 18-month high it reached last week. And the Nasdaq composite gained 21 points (0.9 percent), closing at a more than 18-month high.
Tuesday Was a Different Story
After seeing so many highs, Tuesday morning brought in a few lows. The Dow Jones industrial average rose only 11 points (0.1 percent), while the S&P 500 and Nasdaq didn’t change and the much at all.
Some think the seesaw effect had something to do with a housing report that left some investors reluctant to make investments. After checking out the report, which will give insight to the housing market and economic recovery from February, investors may be will to put more money out there.
However, economists are predicting that the annual rate of existing home sales will fall, which is not great news.
If you’re interested in getting in on the action, it’s good to learn how to invest in the stock market. Also, you’ll want to check out a brokerage or two and also consider whether an investment manager or going at it alone is your cup of tea.
This way, by the time the next 18-month high hits, you will have been able to take part in the gains.