The S&P 500 Rally Hits a Wall at the End of a Strong Quarter – US Market Wrap

The stock market’s enthusiasm faded in the final stretch of a strong quarter, with traders keeping a close eye on any developments in the US presidential race and remaining cautious ahead of France’s elections on Sunday.

Traders across multiple sectors are rearranging their positions in the aftermath of Joe Biden and Donald Trump’s debate. Biden’s shaky performance fueled speculation about Trump’s chances of reelection. As a result, shares of private prisons, credit card companies, and health insurance companies, which could benefit from another Trump presidency, are trading higher, while renewable energy and cannabis stocks are down.

The S&P 500 fell after rising nearly 1% earlier on Friday. Long-term Treasuries underperformed shorter maturities. Bonds had previously gained as inflation data supported bets on Federal Reserve rate cuts.