Monday downturn raises questions about market
CHICAGO - The stock market's 187-point nose dive Monday abruptly ended the Dow's brief foray into positive territory for 2009, leaving stock-watchers to ponder whether an unexpectedly strong spring rally will survive into summer. Plenty of evidence suggests the bull market may be done, or at least out of momentum, after 14 weeks on the upswing. The economy remains fragile, investors are increasingly worried about the prospect of rising interest rates, gas prices are climbing again, and a market correction was probably overdue. The Dow Jones industrial average had rebounded 34 percent and the broader Standard & Poor's 500 index 40 percent since sinking to 12-year lows on March 9. Such numbers made this the fastest-rising market after a bear-market bottom since the 1930s. Yet despite Monday's big downturn, there are an increasing number of positive signs in the economy that signal why it might be premature to bet against the market's continuing comeback. "People are underestimating the ability of the economy to pull itself out of this," said Liz Ann Sonders, chief investment strategist for brokerage Charles Schwab & Co. Widespread skepticism about the rally's staying power is nonetheless a good thing, she said. "If everyone were euphoric, I'd be more worried."
