The S&P 500 had its best day since May on Tuesday which led to the index's largest weekly gain in four months and its first in six weeks. The index rose 3.4% from the previous Friday and is now 5.67% off its all-time high from January 27, 2026.
Strong one-day rallies are far more common in weak markets.
Worries over AI spending and the sustainability of demand have been weighing on the tech sector.
If yesterday's low and breadth signals hold, the index reached a critical turning point, paving the way for renewed upward momentum in the weeks ahead, targeting ~6800.
As the war in Iran triggered widespread macroeconomic uncertainty, stocks like Sandisk, Lumentum, and Dow rose anyway.
These stocks saw significant declines in the month.
The broad U.S. equity index is closing out its worst quarter in four years, reflecting an investor retreat driven in large part by inflation fears, uncertainty over the Iran war and concerns about the economic impact of artificial intelligence.
Four REITs, including Realty Income, surpass the 10-year Treasury yield of 4.3%.
U.S. oil futures settled above $100 a barrel for the first time since July 2022.
Wall Street is also holding firm to its end-of-year price targets for the S&P 500, with a consensus of around 7700 points.
A large institutional options fund may have contributed to some of the recent volatility in the S&P 500.
The S&P 500 finished the week at its lowest level in over seven months and is now inches away from correction territory, sitting 8.74% off its all-time high from January 27,2026. The index posted its fifth consecutive weekly loss, its longest streak since 2022, falling 2.1% from last Friday.