The S&P 500 posted its second straight weekly decline as bond yields climbed and the Federal Reserve raised rates, while the Dow Jones fell 1.7% over the same stretch. The pullback pushed stocks including Boeing, Bank of America and Wynn Resorts into oversold territory, while energy names such as Marathon Petroleum swung into overbought levels.
Bond yields and a Fed hike pressure stocks
The S&P 500 closed 0.1% lower for the week, marking its second consecutive weekly decline, while the Dow Jones Industrial Average declined 1.7% over the same period.
Stocks fell earlier in the week as global bond yields rose, with the yield on the 10-year Treasury hitting its highest level in 19 years. The sell-off deepened after the Federal Reserve hiked its benchmark rate by 25 basis points on Wednesday, though some investors looked past the tighter monetary conditions.
Oversold stocks signal a possible bounce
This week's declines left several stocks oversold, a signal that a move lower may have gone too far. A stock qualifies once its relative strength index (RSI) falls below 30. Boeing made the list with an RSI of 25. Shares slipped more than 5% after CEO Kelly Ortberg warned that 737 Max production was taking longer than expected to stabilize. The stock is down around 9% year to date.
Bank of America also fell into oversold territory, with its RSI reaching 28. Shares slid 8% this week. CEO Brian Moynihan said investment banking fees for the third quarter are expected to fall more than 10%.
Wynn Resorts was the most oversold stock, with an RSI of 17. Shares fell more than 5% during the week to a new 52-week low just north of $81. The stock has shed roughly 31% in 2026. Las Vegas Sands, Carrier Global and TransDigm also landed on the oversold list.
Energy names push into overbought territory
Conversely, a handful of energy stocks moved into overbought territory, where an RSI above 70 implies a stock may be poised for a near-term decline. Marathon Petroleum led the group with an RSI of 87 after shares rose more than 7% this week to a record high of $428. Oil prices trended higher at the start of the week after Saudi Arabia closed its East-West pipeline due to a drone attack that threatened it. The stock has jumped 161% year to date as the Iran war has broadly pushed up global energy prices. Valero Energy and Phillips 66 also made the overbought list.
Source: CNBC
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