Is the stock market headed for a crash?

Investors are panicking. But is the stock market really as overvalued as some fear?

Volatile stocks.
(Image credit: Fanatic Studio / Alamy Stock Photo)

For the moment, the stock market rout seems to be over.

After several days of weakness and back-to-back gut-punch drops on Friday (666 points) and Monday (1,175 points), the Dow Jones Industrial Average (along with the other big indexes) closed out Tuesday on a high note, with the Dow ending up more than 550 points. It was nowhere near enough to make up for the recent bloodbath losses, but it was at least enough to stop the bleeding.

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Jeff Spross

Jeff Spross was the economics and business correspondent at TheWeek.com. He was previously a reporter at ThinkProgress.