Skip to content
Subscriber Only

Dizzying Week Turns Tables on Stock Market’s New Buyers Alliance

  • Big gains in S&P 500 on Monday and Wednesday fall apart at end
  • How sustainable is buying when the economy is flying blind?
Trading On The Floor Of The NYSE Following FOMC Rate Decision
Photographer: Bloomberg/Bloomberg
Updated on

Behind the big recovery in stocks has been a loose consortium of new and old buyers, each responding to a distinct storyline. Traders banking on the Federal Reserve, market novices bent on picking the bottom, and people convinced megacap tech is invincible.

Whether they will be enough to sustain a lasting rally is the next urgent question for bulls, especially now, after a two-session sell-off erased a week’s progress. Friday’s 2.8% fall in the S&P 500 Index served notice that volatility remains an ever-present risk in a market that is flying blind on the economy.