Market Rebound: A Strong Finish to the Week and Optimism for the New One

Market Rebound: A Strong Finish to the Week and Optimism for the New One

Last Week Recap
The U.S. stock market rebounded last week, snapping a two-week losing streak as the S&P 500 rallied 2.9% on easing inflation concerns and a solid start to the earnings season. The Dow Jones Composite surged 3.7%, while the Nasdaq climbed 2.4%. The broader market caught a break, with all sectors ending in positive territory.

• S&P 500: Closed just 1.7% below its record high.
• 10-Year Treasury Yield: Pulled back to around 4.6%, providing relief to equity markets.
• Winning Sectors: Energy, Financials, and Materials led the charge, each surging around 6%.

Sector Highlights

1. Energy (+6.1%)

   • Crude oil futures surged.
   • Oilfield services giant SLB (formerly Schlumberger) rallied on strong Q4 earnings, share buybacks, and a dividend boost.

2. Financials (+6.1%)

   • Big banks like Citigroup (C), Goldman Sachs (GS), and Morgan Stanley (MS) posted stellar Q4 results, driving the S&P 500 Banks Index up 7.4%.
   • BlackRock reported record assets of $11.6 trillion, further bolstering the sector.

3. Materials (+6%)

   • Specialty chemicals company Celanese soared on a double upgrade by Bank of America.

4. Industrials (+4.8%)

   • United Rentals jumped 15% following its acquisition deal for H&E Equipment Services.

5. Technology (+1.6%)

   • Semiconductor firms Applied Materials and Lam Research rallied on positive analyst ratings, pushing the Semiconductor Index up more than 5%.

6. Healthcare (+0.3%)

   • Moderna plunged 19% after cutting its 2025 sales forecast, citing weak COVID-19 vaccine demand and a slow RSV shot launch.

7. Communication Services (+1.3%)

   • Meta Platforms gained after a favorable Supreme Court ruling against TikTok.

Year-to-Date Performance by Sector

• Energy: +9.2%
• Materials: +5.0%
• Industrials: +4.5%
• Utilities: +4.1%
• Financials: +3.8%
• Discretionary: +2.7%
• Communication Services: +2.0%
• S&P 500: +2.0%
• Healthcare: +1.8%
• Real Estate: +0.9%
• Technology: -0.2%
• Staples: -1.0%

Outlook for the New Week
The market enters the new week with momentum. Key earnings reports, economic data, and geopolitical developments will likely shape the narrative. Investors should watch for continued strength in Financials and Energy while monitoring any emerging headwinds.