The Dow Jones Industrial Average was down nearly 20 points in early morning trading, but then recovered, while the S&P 500 closed up nearly 2 percent.
The S&p 500 and the Nasdaq rose about 0.3 percent and 1.2 percent respectively.
The Nasdaq is currently up about 2.2 percentage points since last week.
The Dow was trading at around 2,300.
The NASDAQ was at 2,567.
Investors are now in a tight spot, said Mark Pincus, senior economist at TD Ameritrade.
“We are looking at a potential correction at some point, but I’m not sure that’s going to happen anytime soon,” Pincson said.
Analysts expect the Dow to rebound to about 3,000 by the end of the week, and the S & P 500 to rise by about 1,600.
But Pincsons caution, that doesn’t mean investors should be panicked, he said.
“If we’re looking at it at 3,300 we’re still looking at about 0 to 1 percent of the market,” he said, noting that investors need to take some of the risk of a market correction into account.
While the market is trading at a premium, Pincos said that the downside is still quite high.
Pincus said that many investors are expecting a major correction from the stock market, but he warned that if markets turn into a bubble, investors could lose money on the side.
He said investors could be paying a price for the lack of confidence in the stock markets, which could lead to a recession.
Wall Street has been very nervous about what could happen, but it is hard to see how this can happen without some kind of major crash, he added.
If you are a stock market investor, you need to pay close attention to what is happening in the market.
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