The recent stumble for U.S. stocks means they’re now 11% below their record set in February, after a furious rally had brought them back within 6% in the middle of last week.
Roughly three out of four stocks in the S&P 500 were lower, but the losses had been more widespread earlier in the morning, and gains for media companies, home builders and some other stocks helped pull the market off its lows.
These stocks had been among the market’s strongest just a week ago, when investors were ebullient about expectations for a coming economic recovery.
That optimism sent the stock market on a second leg of its rally, which began in March after the Federal Reserve and Congress promised unprecedented amounts of aid to support the economy.
Brokerages reported big increases in client numbers and trading earlier this year, and stocks popular with individual investors have returned 61% since the market hit a bottom on March 23, according to Goldman Sachs.
