S&P 500 Set for Best Two-Day Run of 2024 Amid Market Rebound
A late-week rally is positioning the S&P 500 for its best two-day advance of 2024, offering a stark contrast to the market turmoil seen earlier in the week. Following a rollercoaster of ups and downs—including a panic-driven selloff on Monday—the S&P 500 is now close to avoiding what would have been its longest stretch of weekly losses this year.
Technology stocks led the rebound, contributing to gains across most major sectors. This recovery comes after a period of heightened volatility fueled by concerns over the Federal Reserve’s response to weak economic data and a surprise rate hike by the Bank of Japan, which rattled global markets.
Traders, who earlier in the week were pricing in aggressive Fed rate cuts, have now scaled back their expectations to around 100 basis points of easing for the year. Despite this adjustment, the S&P 500 managed a 0.3% gain, with notable rises from companies like Expedia Group Inc. (EXPE), following strong earnings, and Cisco Systems Inc (CSCO)., amid reports of additional layoffs.
Treasury yields also dipped slightly, and the VIX, Wall Street’s “fear gauge,” continued to decline after an unprecedented spike earlier in the week, raising questions about whether the index had exaggerated the level of stress in the U.S. stock market.
