Stock Market Momentum Pauses, Dow Drops

Recently, the stock market has been on a roll. On Monday, the recent momentum was paused. Many market experts believe that the momentum over the last several weeks has investors and traders thinking that the recovery is moving too quickly. Despite this pause, most experts believe that the rally will once again pick up steam sooner rather than later.

The Dow Jones industrial average finished Monday at 8,418.8, a drop of slightly less than 2%, while the S&P’s 500 fell slightly more than 2% to 909.2. The NASDAQ index wasn’t hit as hard — falling only 0.5% to finish the day at 1,731.2.

Many banks have recently said they will use the stock market to help raise capital. Apparently, investors didn’t appreciate that fact, resulting in a lot of banks seeing their stocks drop by more than 7%.

Many stock market experts point to Tuesday as the key day this week to determine if this week will result in negative or positive growth in the stock market.

Wall Street (Image: Flickr)