The Stock Market Has Bounced, But Small-Caps Are Lagging. What That Means.

U.S. equity markets rallied as tech stocks gained and Netflix shares rose on strong subscriber growth, while Foot Locker and oil stocks struggled; U.S. Treasury yields and the dollar fell, while cryptocurrency prices rebounded.

US stocks may be facing further declines as Thursday's selloff, despite strong earnings from Nvidia, suggests that this year's rally may be "exhausted," according to analysts at Morgan Stanley.

Tech-heavy Nasdaq Composite and S&P 500 close higher on Monday, while Dow Jones Industrial Average falls slightly; Bank of America analyst predicts insurers will increase customer prices due to increased climate change risk; Allianz economist believes Federal Reserve Chair Powell will focus on short-term monetary policy at Jackson Hole; Loop Capital warns of weak smartphone sales ahead of iPhone 15 launch; CFRA Research chief investment strategist expects year-end rally for stocks despite recession concerns; Homebuilding stocks begin to decline; AMC Entertainment falls ahead of stock conversion; Cybersecurity company SentinelOne explores potential sale; LPL Financial chief technical strategist says recent stock pullback is temporary and predicts end-of-year rally; Jefferies upgrades gold product manufacturer Acushnet Holdings; Nvidia's quarterly earnings report could be critical for the market, says Wolfe Research; Stocks making big moves midday, including XPeng, Eli Lilly, and Marriott Vacations Worldwide.

A potential relief rally in the stock market is expected to start the week, but the upside is limited due to uncertainties about interest rates and the recent volatility, according to a Wall Street technician. The S&P 500 and Nasdaq Composite have experienced pullbacks, but a relief rally may be possible in the near term. However, the long-term trend remains uncertain, and the risk of a downturn in the financial system is elevated.

Buyers returned to the stock market after positive data on the U.S. jobs market suggested that wage inflation may decrease further, with Microsoft stock showing promising signs in forming a new base, while China's PDD Holdings experienced a significant gain amid hopes of government measures to stimulate economic activity. Additionally, megacap tech stocks led a broad rally in the stock market, with the Nasdaq composite rising 1.7%, and there is anticipation of a potential increase in the overnight fed funds rate and a rise in bond yields.

Stocks rally as job openings decline in July, bonds rally on softening job market and odds of interest rate pause, court rules SEC needs more reasoning to block Grayscale's Bitcoin ETF, and other market movements.

Stocks are expected to rally next month, with the S&P 500 potentially reaching its previous highs, according to Fundstrat's Tom Lee, who cited reasons such as a cooling economy, no further interest rate hikes from the Fed, overly bearish sentiment in August, and historically strong performance in September.

Stock market indexes experienced losses as small caps led the selling, while oil stocks rose due to Saudi Arabia and Russia extending their oil production cuts, and other notable stock movements included PulteGroup and Airbnb surging, Blackstone being added to the S&P 500, Brady stock surging after better-than-expected earnings, and Sprinklr, Tesla, America's Car-Mart, NextGen Healthcare, Oracle, Li Auto, and Trip.com experiencing various ups and downs.

The stock market rally faced pressure as rising Treasury yields and Apple's China troubles pushed major indexes below their 50-day moving averages.

U.S. stock investors are closely watching next week's inflation data, which may determine the future of the equity rally, as signs of a soft landing for the U.S. economy have contributed to the S&P 500's gains, but too high inflation could lead to fears of higher interest rates and stock sell-offs.

Tesla was the most shorted large-cap stock in the US for the third consecutive month in August, but saw a 10% rally after a bullish research note from Morgan Stanley.

Big Tech stocks have been driving this year's market rally and have continued to outperform despite recent market volatility.

Big Tech stocks, driven by the promise of artificial intelligence, are experiencing a slowdown in their massive rally due to the Federal Reserve's indication of a restrictive monetary stance, causing declines in some tech giants' stock prices.