How Far Will These Stock Market Favorites Fall?

Monday's good news on the COVID-19 front didn't just lead to a huge rally for a large and beaten-down part of the stock market. It reversed a lot of the trends that market participants have seen throughout 2020.

That reversal continued on Tuesday morning, as investors continued to try to figure out the potential consequences of a coronavirus vaccine, as well as the ongoing political wrangling in Washington. Just after 11:30 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 172 points to 29,330. However, the S&P 500 (SNPINDEX: ^GSPC) fell 11 points to 3,540, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) took an even bigger hit, dropping 139 points to 11,574.

Moreover, several stocks that had become investor favorites during the initial stages of the pandemic have suffered even larger losses. Right now, it's enough to make some wonder whether the bull market in those particular stocks has come to an end -- and how much further they could fall.

Source Fool.com