S&P 500 Slips as Boeing and BofA Enter Oversold Territory
The S&P 500 recorded its second consecutive weekly loss, driven by rising bond yields and a Federal Reserve rate hike. Boeing and Bank of America entered oversold territory, while Marathon Petroleum hit record highs on energy price spikes.
The S&P 500 index closed the week down 0.1%, marking its second consecutive weekly decline. The Dow Jones Industrial Average fared worse, dropping 1.7% over the same period. These losses occurred as global bond yields surged, with the 10-year Treasury yield reaching its highest level in 19 years. The pressure on equities intensified after the U.S. Federal Reserve raised its benchmark interest rate by 25 basis points on Wednesday, signaling a continued tightening of monetary policy.
The broad market weakness pushed several major corporations into technical oversold territory, defined by a Relative Strength Index (RSI) below 30. According to data cited by GN stocks/sp500, Boeing and Bank of America both registered RSI figures indicating significant downward momentum. Boeing shares fell more than 5% after CEO Kelly Ortberg warned that stabilizing production of the 737 Max aircraft is taking longer than anticipated. The stock is down approximately 9% year to date.
Bank of America Faces Fee Pressure
Bank of America shares slid 8% during the week, reaching an RSI of 28. The decline followed comments from Chief Executive Brian Moynihan, who indicated that investment banking fees for the third quarter are expected to decrease by more than 10%. This projection reflects a challenging environment for the bank's capital markets division, contributing to the stock's oversold status alongside other financial names.
Wynn Resorts Hits New Lows
Wynn Resorts emerged as the most oversold stock in the index, with an RSI of 17. The company’s shares dropped more than 5% to reach a new 52-week low near $81. Over the current year, the stock has shed roughly 31% of its value. Other names such as Las Vegas Sands, Carrier Global, and TransDigm also entered oversold territory, suggesting a broad pullback in these specific sectors.
Energy Stocks Show Extreme Strength
In contrast to the broader market weakness, energy stocks experienced significant gains, with some entering overbought territory. Marathon Petroleum saw its RSI climb to 87, the highest level recorded this week. The stock rose more than 7% to a record high of $428, driven by higher oil prices following a drone attack that threatened Saudi Arabia’s East-West pipeline. The company is up 161% year to date, benefiting from global energy price increases linked to geopolitical tensions in the Iran region.
Other energy firms, including Valero Energy and Phillips 66, also appeared on the list of overbought stocks. An RSI above 70 typically implies that a stock may be poised for a near-term correction. The divergence between the struggling industrial and financial sectors and the booming energy sector highlights the mixed performance of the S&P 500 components during this volatile week.
