S&P 500 Snaps 5-Week Losing Streak With 3.4% Gain
The broad market index posted its best week since January as oil retreated and Iran war optimism lifted stocks. Nasdaq surged 4.4%.
The S&P 500 broke its five-week losing streak. The index gained 3.4% for the holiday-shortened week, its best performance since January. The Nasdaq Composite jumped 4.4%, also its first positive week in six.
Markets closed Friday for Good Friday, giving traders the weekend to process a stronger-than-expected March jobs report released that morning.
Weekly Performance
| Index | Weekly Change | YTD |
|---|---|---|
| S&P 500 | +3.4% | -2.1% |
| Nasdaq Composite | +4.4% | -4.8% |
| Dow Jones | +2.96% | +1.3% |
| Russell 2000 | +2.1% | -5.7% |
Tuesday delivered the standout session. The S&P 500 rose 2.3%, its best single day since May. The catalyst: reports that Iran was willing to discuss ceasefire terms.
The geopolitical headlines drove the move. Oil prices retreated from their highs as traders priced in a potential end to the Strait of Hormuz disruption. Brent crude fell from $115 to $108 during the week, though it remains elevated compared to pre-war levels.
Sector Breakdown
Technology led. The XLK tech ETF gained 4.8% as the growth trade caught a bid. Nvidia added 7%, recovering some of March's losses. Amazon and Meta each rose more than 5%.
Energy lagged as crude pulled back. The XLE energy ETF fell 1.2% for the week, its first decline in seven weeks. Exxon and Chevron both finished lower despite the broader market rally.
Financials performed in line with the index. Banks rallied into their Q1 earnings reports scheduled for next week.
The Technical Picture
The rally pushed the S&P 500 back toward its 200-day moving average at 6,420. The index closed Thursday at 6,582, above that key technical level for the first time since March 19.
Reclaiming the 200-day would be constructive. The index has tested and failed at this level three times since the breakdown. A sustained move above it would suggest the correction is over.
But the rally came on average volume. Conviction buying typically shows up with elevated volume on up days. This move looked more like short covering than institutional accumulation.
Jobs Report Reaction
The March employment data landed Friday morning while cash markets were closed. Nonfarm payrolls rose 178,000, tripling the 57,000 consensus estimate. The unemployment rate held at 4.3%.
Treasury yields jumped on the release. The 10-year yield rose 8 basis points in early Globex trading, reaching 4.52%.
Equity futures traded slightly lower after the report. The data reduces the urgency for Fed rate cuts, keeping financial conditions tighter for longer. But the reaction was muted. Traders appear satisfied that the labor market isn't deteriorating, even if rate cuts are delayed.
What to Watch
The bank earnings begin April 14 with JPMorgan and Wells Fargo. Their reports will set the tone for the broader earnings season.
Iran developments remain the swing factor. The market has rallied on peace hopes before, only to reverse when negotiations stalled. Any setback in talks could erase this week's gains.
For now, the trend has shifted. The five-week losing streak is over. Whether this marks the start of a sustained recovery or just a bounce within an ongoing correction will depend on the news flow ahead.