Stocks Bounce Back. Twice.

Last week opened with a rebound rally as investors breathed a sigh of relief that Middle East tensions had eased. The market rally extended into Tuesday, with investors cheering positive corporate earnings reports. By Tuesday’s market close, the S&P 500 had gained 2% for the week.^1,2,3

But investor enthusiasm didn’t last, as midweek saw profit taking in all three averages. Rising bond yields threw a wet blanket on market momentum; at one point, the yield on the 10-year Treasury note rose more than 40 basis points from its low earlier in the week.⁴

On Thursday, markets slipped on two fresh pieces of economic data: a Gross Domestic Product (GDP) slowdown and higher consumer prices. But by midday, selling pressure slowed. Stocks pushed higher on Friday behind upbeat Q1 reports from two mega-cap tech stocks, helping the S&P 500 and the Nasdaq post their best week since November.⁵

Footnotes and Sources

1. ^{The Wall Street Journal, April 26, 2024}
2. ^{CNBC.com, April 22, 2024}
3. ^{CNBC.com, April 23, 2024}
4. ^{CNBC.com, April 24, 2024}
5. ^{The Wall Street Journal, April 25, 2024}