S&P 500 Continues Rebound Post Sharp Correction – US Market Wrap
US stocks rose for a second day, extending their rebound from a 10% collapse last week, as industrial and energy firms rose on economic data that, while missing projections, alleviated fears of an impending recession.
The S&P 500 climbed, overshadowing a decline in most megacaps, such as Tesla and Nvidia. An equal-weighted version of the US equity index, which gives Target as much clout as Apple, rose 1.3%. While the most recent batch of economic statistics did nothing to change traders’ forecasts on the Federal Reserve’s outlook, mixed Retail Sales provided some solace that consumer spending is not collapsing with the potential of a trade war.
According to Michael Wilson of Morgan Stanley, sentiment/positioning gauges have softened considerably, and seasonals are expected to strengthen in the second half of March. This should promote a short-term rally headed by the lower-quality, higher-beta equities that have sold off the most.
The S&P 500 increased by 0.6%. The Nasdaq 100 gained 0.5%. The Dow Jones Industrial Average rose 0.9%. A measure of the Magnificent Seven megacaps dropped 1.1%. The Russell 2000 rose 1.2%.
The 10-Yr Treasury yield was hardly changed at 4.30%. The Dollar Spot Index declined 0.3%.
