S&P 500 Erases 1% Decline in Tech-Led Rebound – US Market Wrap
Stocks rebounded after a selloff caused by poor forecasts from economic bellwethers across multiple industries.
The S&P 500 recovered from a decline that had previously exceeded 1%, closing the week higher. Tesla led advances in megacaps, while Boeing surged on a contract to manufacture the United States’ next-generation fighter plane. Traders were disappointed with forecasts from FedEx, Nike, Micron Technology, and Lennar. Wall Street experienced increased volatility as an estimated $4.5 trillion in contracts related to equities, indices, and exchange-traded funds expired.
Trillions of dollars have been shaved from US share values in the last month as traders became concerned about an economic slowdown, the impact of tariffs, geopolitical threats, and excessive tech valuations. Just a week after the S&P 500 saw a 10% fall, rebounds failed to hold, hurting one of the most tried-and-true financial strategies: dip buying.
The S&P 500 and Dow Jones Industrial Average were largely unchanged. The Nasdaq 100 rose 0.4%. The yield on 10-year Treasuries increased one basis point to 4.25%. The dollar gained 0.3%.
