Stock Market Cools, Starts Consolidation

After over a week of deep selloff pressure all across the market, investors have finally decided to cancel their efforts to sell their stocks, instead using lower lows and lower highs to buy the dip.

Image highlighting Monday's shift upwards after weeks of downturn, as shown by the Standard & Poor's 500 index on Yahoo Finance.

Due to fears of the Fed's decision to influence interest rates in September, markets sold off. If the Fed decided to keep interest rates high, the economy would continue to experience higher unemployment rates and an overall unfriendly business environment.

However, after Jerome Powell announced his interests to cut rates in September, the market continued to fall. This time, markets responded negatively to Nvidia's poor earnings report, showing the company is outperforming by much less than previous reports, causing a market-wide downturn including Nvidia's share price collapse by over $20 per share.

The fallout of this earnings report lasted a few days into September, with Friday being the last negative day for the market.

Now, the markets are surging, making up ground which it desperately needs to do to restore previous highs and lows.

Investors, now confident that the market has reached its floor, have finally pursued into buying pressure, driving stocks up. Also, 2024 election news have cooled which has had an effect on investor enthusiasm in buying and trading.