Dip Buyers Step In To Fuel Bounce from Lows – US Market Wrap

Equities rebounded from session lows after a week-long tech rout, the latest indication of febrile Wall Street trading ahead of Powell’s Jackson Hole speech.

Following a rout that shed blns of dollars from US stock values, buyers appeared in the last stretch of Wall Street trading. A renewed rout in large tech and hints inflation remains the principal concern of Fed officials bore down on trading.

The majority of major groups in the S&P 500 climbed, with energy and defensive stocks leading gains. All megacaps declined, but they also bounced and trimmed losses. The Nasdaq 100 was down by 0.6% after earlier falling almost 2%.

Treasuries pared earlier gains as Fed minutes of last month’s meeting call into question how far and how fast the Fed will cut rates.

2-Yr yields were little changed at 3.74%, in comparison to a decline of 4 BPS earlier. Swaps showed traders continued to price in a high chance that the Fed will lower rates next month.