The Stock Market Bounces From Lows With the Help of Stock Buyers

U.S. stocks managed to claw back from earlier losses on Wednesday, marking a cautious recovery after a week-long tech-driven selloff. The rebound comes as investors brace for Federal Reserve Chair Jerome Powell’s highly anticipated speech at Jackson Hole, which could shape the next big move in markets.

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After several sessions of heavy selling that erased billions in U.S. equity value, buyers stepped back in during the final stretch of trading. Still, pressure on mega-cap tech stocks and lingering concerns about inflation—highlighted in the Fed’s recent meeting minutes—kept gains in check.

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By the closing bell, the S&P 500 slipped just 0.2%, with most sectors ending higher. While all the major tech giants ended the day lower, they managed to pare back steep early losses. The Nasdaq 100 finished down 0.6% after plunging nearly 2% at its session low.

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The market remains fragile, with some big names in finance sounding alarms. Howard Marks, co-founder of Oaktree Capital Management, warned that U.S. stocks are in the “early stages” of a bubble—though he added that the tipping point for a major correction hasn’t arrived yet.

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“Today feels like a test for dip-buyers, especially with Thursday’s PMI data and Powell’s Jackson Hole speech, which could change the narrative,” wrote Andrew Tyler of JPMorgan Chase & Co.

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In the bond market, Treasuries inched higher as traders shrugged off warnings about inflation risks from the Fed minutes. Interest rate swaps continue to price in a strong likelihood of a rate cut in September, reflecting investor confidence in an easing cycle despite the central bank’s cautious tone.

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Chris Zaccarelli of Northlight Asset Management believes Powell will remain deliberately vague in his remarks, reiterating the Fed’s commitment to its dual mandate and data dependency.
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“The latest minutes align with Powell’s previous hawkish stance,” added David Russell at TradeStation. “Bulls could get a harsh reality check at Jackson Hole.”

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Marco Casiraghi at Evercore noted that the Fed minutes feel “a bit dated” given recent economic trends, particularly the weaker-than-expected July jobs report. Still, he emphasized that policymakers are prepared to act swiftly if conditions change.
“These dynamics reinforce our view that the Fed will cut in September unless the labor market unexpectedly tightens or inflation picks back up,” Casiraghi said.

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Even with Wednesday’s late-session rebound, the focus stayed on the market’s biggest influencers—mega-cap tech stocks. Their continued decline dragged the S&P 500 into its fourth consecutive losing session, highlighting concerns about sector concentration risk.

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While most major sectors closed in positive territory, some strategists warned that tech’s dominance makes it hard for rotation into other areas to prevent a broader selloff.
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“Rotation only works if big tech holds steady,” said Matt Maley of Miller Tabak. “If they keep sliding, the only rotation investors will make is into cash.”

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Mark Hackett of Nationwide observed that leadership is shifting, with large-cap growth stocks underperforming small caps and value plays this month.
“Even so, volatility remains contained, and credit spreads are calm—signaling only modest fear among investors,” Hackett said.

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Carol Schleif at BMO Private Wealth cautioned that equity valuations look stretched, leaving little room for negative surprises.
“The market is currently priced for a bright future, and so far, that outlook seems justified by stronger-than-expected earnings and improved clarity on trade and tax policy,” Schleif said.

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Markets are stabilizing for now, but the upcoming economic data and Powell’s Jackson Hole speech could be pivotal. With tech stocks under pressure and valuations at elevated levels, investors should prepare for continued volatility in the weeks ahead.

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