Market Recovers Strongly, Despite a Disappointing Debate

Most major stock market indexes rose 4% or more last week, and I expect this robust rebound will continue this week since the market remains grossly oversold.

Former President Donald Trump (L) and Vice President Kamala Harris speak during a presidential debate at the National Constitution Center in Philadelphia on Sept. 10, 2024. Saul Loeb/AFP via Getty Images

Commentary

Most major stock market indexes rose 4% or more last week, reaching break-even status for the first half of September. We’re seeing that good, fundamentally superior stocks typically bounce back quickly, like “fresh tennis balls,” while bad, fundamentally inferior stocks typically don’t bounce at all, like rocks. I expect that this robust rebound will continue this week since the market remains grossly oversold.