Stories
S&P 500 Dips Again: These Oversold Stocks Could Be Primed for a Rebound
- •The S&P 500 recorded its second consecutive weekly decline, falling 0.1%, while the Dow Jones Industrial Average dropped 1.7%.
- •Market volatility was driven by rising global bond yields, with the 10-year Treasury hitting a 19-year high, and a 25 basis point rate hike by the U.S. Federal Reserve.
- •Several stocks, including Boeing (RSI 25), Bank of America (RSI 28), and Wynn Resorts (RSI 17), entered oversold territory, signaling potential bounces.
- •Wynn Resorts hit a new 52-week low and is the most oversold stock this week, with shares down 31% year-to-date.
- •Conversely, energy stocks like Marathon Petroleum (RSI 87) became overbought, suggesting a potential near-term decline, fueled by rising oil prices and the Iran war.
Key Questions Answered
Several stocks entered oversold territory with a relative strength index (RSI) of less than 30. Boeing became oversold with an RSI of 25 following a more than 5% share drop, Bank of America reached an RSI of 28 after sliding 8%, and Wynn Resorts became the most oversold stock with an RSI of 17. Other oversold names included Las Vegas Sands, Carrier Global, and TransDigm.
Energy stocks such as Marathon Petroleum surged into overbought territory with an RSI of 87 after oil prices trended higher. This rally was triggered when Saudi Arabia closed its East-West pipeline due to a drone attack, while broader global energy prices were pushed up by the Iran war. Marathon Petroleum shares rose over 7% to hit a record high of $428, alongside gains from Valero Energy and Phillips 66.
The S&P 500 closed 0.1% lower for the week, marking its second consecutive weekly decline. Meanwhile, the Dow Jones Industrial Average dropped 1.7% during the same period. These market moves occurred amidst rising global bond yields, with the 10-year Treasury yield hitting a 19-year high, and a 25 basis point benchmark rate hike by the U.S. Federal Reserve.
