Finance

Major US stock averages recovered sharply after an initial sell-off triggered by hawkish central bank commentary. The Nasdaq Composite led the rebound with a nearly 2% gain, while the S&P 500 reached levels around 7,500 points, effectively offsetting recent weakness as investors processed strong corporate earnings and shifting interest rate expectations.

Recent market data indicates a notable rotation away from the highly concentrated mega-cap technology stocks known as the Magnificent Seven, which have underperformed compared to the broader S&P 500. While the equal-weighted index hits new highs, analysts are watching this broadening participation as a sign of a healthier but increasingly volatile market environment.

The yield on the benchmark 10-year Treasury note has settled around 4.46% following a period of significant volatility. Despite a brief spike in short-term yields after the latest Federal Reserve announcement, bond markets remain cautious as persistent energy costs and high inflation readings continue to buoy longer-dated maturities.