U.S. stocks recover after strong drop

TradingPub Admin | June 21, 2013

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If you want some free stock trading education, here is a lesson: asset values will frequently bounce back after having sharp declines.

During the week ending on June 21, U.S. stocks, along with other assets including bonds and commodities, dropped sharply as markets responded to communications provided to the media after the most recent meeting of the Federal Open Market Committee.

Fortunately, stocks began to recover from these sharp declines on June 21, according to Bloomberg. The S&P 500 edged up slightly, closing 0.3 percent higher at 1,592.43 in New York at 4 p.m. The Dow Jones Industrial Average also displayed some improvement, finishing the day 0.3 percent higher at 14,799.40.

During the prior two trading sessions, the Dow fell 560 points, or 3.66 percent, MarketWatch reports. This represents the sharpest drop for the group of stocks since November 2011.

Laszlo Birinyi, president of Birinyi Associates Inc., said in an interview with Bloomberg that such price movements are not out of the ordinary for the equity markets, according to Bloomberg. He asserted that such corrections are normal.

If you want additional free stock trading education, you can find it at TradingPub, home to some of the top investors and traders in the industry.