Wall Street is in full rally mode after July’s inflation data eased fears that tariff-related cost pressures were widespread. The headline Consumer Price Index (CPI) came in below expectations, holding steady at 2.7% year-over-year and fueling speculation of upcoming interest rate cuts.
After showing resilience late last week, U.S. market breadth softened on August 11, with declining stocks outnumbering advancers and several short-term momentum indicators losing ground.
U.S. market breadth showed little change on Friday, with advancing and declining issues nearly balanced. Short-term momentum indicators remained moderate, while longer-term breadth metrics were stable. The data points to a market still searching for direction after a volatile start to August.
Tech stocks staged a full rebound from last Friday's sell-off, with the Nasdaq 100 surging to 23,600 — just shy of the 23,700 all-time high set in late July, as the week’s strong sector earnings and broad gains among the Magnificent Seven fueled the rally.
After a strong breadth surge on August 4th, recent sessions show a loss of follow-through with mixed participation and falling advancing metrics. The data reflects a market in search of direction, with breadth reverting toward neutral levels and no clear leadership emerging. Momentum is cooling, though not breaking down decisively.
U.S. equities slipped midday Thursday as corporate earnings and fresh tariff announcements from President Donald Trump drove divergent moves in heavyweight names.
Following a powerful thrust in market breadth on Monday, August 5 and 6 showed a more tempered, neutral tone. While key moving average participation remained stable, short-term breadth momentum slightly eased, suggesting the rally may be in need of further confirmation.
U.S. stocks rebounded sharply on Wednesday, fully erasing last Friday's losses, as upbeat corporate earnings and renewed investor optimism outweighed concerns over escalating trade tensions.
After a powerful rally on Monday, August 4, market breadth moderated slightly on Tuesday, August 5. While short-term participation dipped, there was no major deterioration in medium- or long-term trends. The market remains in a holding pattern with signs of underlying strength.
A strategist said he favors growth over value, large caps over small caps, and the communication services and financials sectors as the market navigates through tariff headwinds.
Investors have pulled out a record $80 billion from small-cap stocks so far in 2025, setting the stage for what could be the largest annual outflow in the history of this segment.
Stocks slipped Tuesday as fresh economic data reignited stagflation fears on Wall Street, overshadowing a blowout quarter from Palantir Technologies Inc.
After a week of deteriorating breadth, August 4, 2025, delivered a decisive reversal as over 80% of stocks advanced, with strong participation across key moving averages.
President Donald Trump’s tariffs continue to remain an overhang, with the market eyeing the Aug. 7 timeline when the revised tariff rates announced last week would take effect.
