Dow Rises; S&P 500 Rise and Nasdaq Fall; Broadcom, MP Materials, Nvidia, Tesla, More Movers; Trump, China Trade Fears; Fed’s Powell Speech
The S&P 500 is joining the Dow in its biggest comeback since April.
The market benchmark was up 0.3% with 420 of its member stocks on the rise. The Dow was up about 400 points, or 0.9%. The Nasdaq Composite was down just 0.2% as AI stocks dragged on the tech-heavy index.
The Dow and S&P could lock in their biggest reversals from an intraday low since April if they close higher on the day. How the market responds this week will be especially important given the severity of Friday’s 2.7% decline, Frank Cappelleri, founder of technical analysis firm CappThesis, told Barron’s.
“That marked a clear change of character considering we hadn’t seen even a 1% loss since August 1,” Cappelleri says. “The interesting part is that big daily loss, the peak-to-trough from the last all time high (last Thursday) to Friday’s low totaled only 3.2%. That aligns with the shallow pullbacks we’ve seen since mid-April. In other words, if we don’t see meaningful downside follow-through soon, Friday’s sharp drop may end up looking like every other ‘buy-the-dip’ event.”
He says traders are eyeing the S&P 500’s 50-day moving average, which was at 6544.41 on Tuesday. The index came close to testing the level Friday and Tuesday.
“The index hasn’t closed below that line since April 30, which, of course makes it significant to hold from both a technical and psychological perspective,” Cappelleri says.
