X - Bruised Stocks Set For Rebound After 3 Days Of Losses Despite Lofty Bond Yields: Why This Analyst Says 'Don't Lose Faith Just Yet' | Benzinga
Friday’s trading signals optimism as markets rebound from a bearish week, spurred by the Federal Reserve‘s hawkish stance. Bargain hunters, particularly in the tech sector, could bolster select stocks. Investors will monitor Fed speeches, manufacturing data, and rising bond yields for further cues.
Cues From Thursday’s Trading
Thursday’s trading saw rising Treasury yields dampen risk appetite, pushing major indices lower for the third consecutive session.
Indices opened lower, moved sideways until late afternoon, and then experienced further selling. Jobless claims dropped significantly, showcasing labor market strength. However, the Philadelphia Federal Reserve reported a contraction in September manufacturing activity, and the Conference Board’s leading economic index matched expectations with a 0.4% month-over-month decline.
The Nasdaq Composite and Russell 2,000 Index hit early June closing lows, while the Dow Industrials reached a July 10 closing low, and the S&P 500 settled at a three-month low.
The market downturn affected various sectors, with consumer discretionary, material, and real estate stocks taking significant hits.
Index Performance (+/-) Value
Nasdaq Composite -1.82% 13,223.99
S&P 500 Index -1.64% 4,330.00
Dow Industrials -1.08% 34,070.42
Russell 2000 -1.56% 1,781.83
Analyst Color:
Amid the gloom in the market, Carson Group analyst Ryan Detrick pointed to one encouraging data point. The last three times the S&P 500 Index was down at least 1% each in August and September, October was up 8% in ...