Wall Street rose on Wednesday, with investor optimism lifted by strong bank and corporate earnings alongside growing expectations for further Federal Reserve rate cuts — keeping trade concerns sidelined for now.
After Friday’s washout and Monday’s surge, Tuesday extended the rebound with another advancers-led session. Short- and intermediate-term breadth gauges improved broadly, though weekly/monthly composites and the % above the 20-day remain sub-50, suggesting the rally is promising but not “all clear.”
After last week’s washout, Monday delivered a broad-based rebound (advancers ~79%). Short-term participation improved, but weekly gauges and the 20-day trend remain soft. This looks like a strong counter-move inside a still-fragile short-term tape.
After a brief recovery attempt midweek, market breadth deteriorated again on Friday, October 10. Declining stocks overwhelmed advancers, and short-term momentum gauges worsened. The underlying trend has clearly shifted back to a defensive posture.
After Wednesday’s strong rebound, Thursday’s session saw a broad-based retreat across U.S. equities. Most of the short-term breadth indicators turned red again, signaling that the recent recovery attempt has faltered.
U.S. stocks edged lower on Thursday, pausing after a record-setting run. The S&P 500 slipped 0.4% by midday in New York, retreating from an all-time high of 5,674 hit at the open.
After a sharp contraction on October 7, market breadth showed a notable rebound on October 8, with advancing stocks regaining control and key percentage levels rising again. However, underlying indicators suggest the market has yet to firmly re-establish positive momentum.
The brief pause in the market rally didn't last long. Wall Street resumed its climb toward fresh records on Wednesday, powered by another relentless surge in technology stocks — while in commodities, gold continues to defy the laws of gravity.
After a relatively stable start to October, Tuesday's breadth data shows a decisive shift to the downside. Decliners overwhelmed advancers, with significant weakness across multiple breadth indicators. This marks a notable change in tone and resets short-term breadth momentum.
Risk sentiment is taking a breather after days of a relentless rally, with all major Wall Street indexes trading in negative territory and sharper declines hitting the most speculative assets, such as cryptocurrencies.
After last week’s broad advance, Monday’s session showed a mild fade in day-to-day participation while the bigger-picture metrics (new highs vs. lows and % above key MAs) stayed solidly constructive. It looks like digestion rather than deterioration.
Economist Jeremy Siegel stated that the market can handle slower growth if disinflation persists and AI-driven productivity becomes evident in 2026 and beyond.
Tech and AI-related stocks continued to propel Wall Street to new record highs Monday, with Advanced Micro Devices Inc. (NASDAQ:AMD) surging nearly 30% after unveiling a landmark investment in OpenAI.
