S&P 500 Makes Its Best Back-to-back Gains This Year – US Market Wrap

Stocks rebounded in the final stretch of a wild week, propelling the market to its largest back-to-back gain in 2024.

That sense of calm contrasts sharply with the recent turbulence that has shaken the global financial system. After many ups and downs, including Monday’s panic selling, the S&P 500 nearly erased its weekly losses. Almost every major group gained in a session with low trading volume.

There was no shortage of drama in August, which hit a market that was showing signs of exhaustion following a strong rally. Worries about the Federal Reserve falling behind the curve fuelled by some weak economic data left traders on edge. Conflicting views on Japan’s policy path have exacerbated the volatility, with the battered carry trade ricocheting across asset classes.

The S&P 500 increased 0.5%, leaving the gauge little changed for the week. Expedia Group rose following better-than-expected results. According to reports, Cisco Systems plans to cut thousands of jobs in a second round of layoffs this year.

Treasury 10-year yields fell five basis points, to 3.94%. After pricing aggressive Fed cuts this week, traders reduced their bets to around 100 basis points of easing for the year. Most economists polled expect only a quarter-point drop in September. That contradicts calls from some major banks for a massive cut