Stocks rebound after Dow’s largest drop in a year

US stocks rebounded on Friday after the Dow’s significant drop, with the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average all showing gains. The S&P 500 rose by 0.3%, the Nasdaq gained a similar amount, and the Dow added around 0.1%, or roughly 50 points.

The market turmoil on Thursday was driven by renewed concerns about interest rates, as US Treasury yields rose, with the 10-year yield hovering close to 4.5%. Stronger-than-expected US business data prompted a reassessment of the Federal Reserve’s stance on interest rates, leading to uncertainty among traders.

Despite the recent volatility, there is a sense of optimism on Wall Street as traders are divided on whether the Fed will cut rates at its September meeting. Goldman Sachs revised its prediction, now expecting the first rate cut to happen in September rather than July.

One bright spot in the market was Nvidia, whose stock saw a modest increase following a strong quarterly report and news of an upcoming stock split. The company’s decision to split its stock 10-for-1 aligns with a trend among tech companies to make their shares more accessible to retail investors.

Looking ahead, investors are keeping an eye on the University of Michigan’s revised consumer sentiment index for May, which could provide further insights into how inflation and interest rate concerns are impacting Americans’ views of the economy. Despite the recent turbulence, the market seems poised to enter the holiday weekend on a more positive note.