Dow Charges Out of Slump on Volatile Tuesday for Stocks

Stock Watch

Dow Charges Out of Slump on Volatile Tuesday for Stocks

Following a brutal two-day plunge, the Dow Jones industrial average regained ground on Tuesday to the delight of stock market bulls.

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A whipsaw trading day that saw the major indices flip back and forth between big gains and steep losses ended with a booming rally and a sigh of relief across Wall Street.

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What Happened in the Stock Market Today?

The Dow, which opened Tuesday, Feb. 6, down by 261 points, eventually rebounded for a 2.3% gain to close at 24,912. That 567-point recovery offers investors at least a little respite -- and a moment to think about the all-important bigger picture.

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The bull market may have been shaken, but it's still intact, and it's still sitting on a stable foundation. Nothing about the past few trading days has changed the fact that the economy is healthy. Investors should take a few minutes to look at the list of positive indicators signaling America's economic strength -- they'll find there are few reasons to sell. In fact, one market expert even says that's a reason to get bullish on commodities again.

That doesn't mean stock volatility is about to simply disappear. Stocks still are overpriced compared to historical averages, and the potential for the bond market to continue sliding hasn't been put to bed. If nothing else, we could be in for a riskier stretch compared to the all-time-low volatility we saw in 2017. The return to higher market volatility can be especially worrisome for retirement savers. Here are several tips to safeguard what you've already socked away in your nest egg.

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