Stock Market Summary

The stock market experienced notable fluctuations recently, with the S&P 500 managing to hold above its 50-day moving average for 133 sessions, marking the longest such streak since 2007. However, this stability was threatened as the index faced significant volatility.

According to recent reports, technology stocks had their worst week since April, driven by investor fears surrounding potential overvaluation in the AI sector. With the combined market value of eight major AI-related stocks dropping by about $800 billion, the Nasdaq index fell 3% over the week.

Meanwhile, the broader market showed resilience, as a wave of buying activity in the afternoon helped major indexes rebound from early session lows, indicating some bullish sentiments despite prior declines.

Notably, the Dow Jones showed a fight back at critical levels, raising questions about whether this is a genuine opportunity for recovery or just a head fake. Amidst this backdrop, Wendy's announced plans to close hundreds of its underperforming U.S. locations, adding to a growing list of fast-food casualties as the industry adapts to changing consumer habits.

In the crypto space, the total market cap fell to $3.5 trillion, a stark decline from October's peak of $4.4 trillion, with crypto ETFs experiencing net outflows of $700 million over the past week. This downturn reflects ongoing skepticism in the market, particularly concerning the sustainability of AI and crypto valuations.

Overall, while some stocks like Nvidia are still in buy zones, the prevailing atmosphere suggests caution as investors navigate through these turbulent waters.