The S&P 500 has rebounded more than 6 percent since Aug. 5, when a sharp decline sent the U.S. benchmark index to its biggest three-day drop in more than two years. A quick return to calm was also evident in the Cboe Volatility Index, or Wall Street’s “fear gauge,” which has retreated from last week’s four-year highs at a record pace, according to a Reuters report.
Some of the biggest winners of 2024 have seen strong rallies since Aug. 5. Chipmaker Nvidia has rebounded more than 20%, while the Philadelphia SE Semiconductor Index has gained more than 14%. Small-cap stocks, which had performed well in July, have also rebounded from recent lows, with the Russell 2000 up nearly 5%, Reuters reported.
Meanwhile, traders are unwinding bets that the Federal Reserve will need to implement large rate cuts in September to avoid a recession.
The Fed’s plans could become clearer this week when Chairman Jerome Powell speaks at the central bank’s annual economic policy symposium in Jackson Hole, Wyoming.
Frequently Asked Questions
Q1. What are the major US stock indices?
A1. The main US stock market indices are the Nasdaq Composite, the S&P 500 and the Dow Jones.
Q2. What is the fear indicator on Wall Street?
A2. Wall Street’s “fear gauge” is the CBOE Volatility Index.
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