Stocks end higher after dramatic selloff

 begin quote from:

• Stocks end higher after dramatic selloff

end quote.

This makes complete sense. Why?

Because people who cannot afford the risk of their investments dropping in value are selling out many of them at a loss because they cannot financially sustain this loss for 5 to 10 years until theses stocks recover potentially. 

Of course it is true that the market could theoretically go to 40,000 but that is highly unlikely at least in the short run because of what the Fed is forced to do now in slowly very slowly raising interest rates so slowly that it doesn't create more of a panic.

Then what is happening as people who cannot sustain stock losses sell often at a loss, the bigger investors are going to swoop in on the deals this allows them to make because they CAN sustain losses of 5 to 10 years so they are investing for the long haul now.

So, both the sellers and the buyers make complete sense in what is happening right now to the stock market.

Why will the FED slowly raise interest rates?

Because this is one of the easiest ways to stop inflation in it's tracks. But, the natural consequences of doing this is the stock market is naturally going to drop  when you raise interest rates. WHY?

Because everything becomes more expensive especially money to borrow and so it becomes too expensive for most companies to expand then and it becomes more difficult for people to buy houses too.

And so companies stop expanding somewhat and people stop buying houses somewhat too unless they can pay cash for those houses somehow.