S&P 500, Nasdaq Gain; Nvidia, TSMC, Lumen, Paramount, Expedia, Other Stocks on the Move; Mag 7 Rebounds; Treasury Yields
The S&P 500 has almost managed to climb out of the deep hole in which it started the week, thanks to the situation being in control.
The S&P 500 index rose 0.5% on Friday, about two points off its level at the end of last week. The Dow Jones Industrial Average gained 51 points, or 0.1%. The Nasdaq Composite added 0.5%. The Dow and Nasdaq also posted modest weekly declines.
The S&P 500 index fell 3% on Monday, its worst daily decline since 2022. Fears of weakening economic data and the Federal Reserve being late on interest rate cuts sent volatility soaring and stocks plunging.
The Japanese yen also rose that day, impacting traders who borrowed at low rates in the currency to invest in higher-yielding assets.
The CBOE Volatility Index, which soared to 65.73 during Monday’s selloff, was back around 20 today.
Market participants aren’t necessarily done worrying about the economy, but the consensus seems to be that Monday’s sharp decline was overdone. Whether the market is poised for another decline or a rise depends on the data coming in.
The next big event will likely come on Wednesday, when the Labor Department releases the consumer price index for July.
