S&P 500, Nasdaq Under Pressure as Fed Bets Reshape US Stocks

The S&P 500 and Nasdaq ended the week on a weaker footing, reflecting a combination of macro and sector-specific pressures. Rate-hike bets jumping late in the week triggered broad-based selling, with technical support levels tested across major indices as momentum indicators turned negative.

Beneath the index-level weakness, software stocks illustrated a more nuanced story, with AI-driven divergence creating pockets of strength even as the broader tape softened. This suggests index-level technical breakdowns may mask selective opportunities in individual names.

Traders watching US stocks into next week should monitor whether support levels hold following this rate-driven selloff, as a failure to stabilize could extend the corrective move across the Dow, S&P 500, and Nasdaq.