Sparking that earlier drop before bargain hunters piled in: mounting geopolitical tension as NATO prepares for a potential Russian invasion of Ukraine and concerns over an increasingly hawkish Federal Reserve ahead of their policymakers meeting this week.
Kramer Capital Research Chief Investment Officer Hilary Kramer says the worst isn't over just yet:
"We hit the tipping point in terms of the market because the Feds policies cannot sustain. You can't have zero percent fed funds rate and expect that the market can keep going up. It creates inflation. We are an inflationary period and the Fed must start raising rates to bring back and hold back those reins, and until they do, this market is gonna keep going down or we're gonna see inflation keep rising."
The Dow ended up nearly 100 points. It and the S&P gained more than a quarter percent. The Nasdaq bounced back the most, rising six-tenth percent.
One standout stock even through the sell-off: Kohl's. Shares shot up by over a third after Reuters reported that private equity firm Sycamore Partners is readying a bid for the department store chain. This comes just days after activist investment firm Starboard Value proposed a buyout.