Stocks Have Rebounded Ahead of the Fed Meeting—But the Market's Leaders Are Changing

Group 1 - The stock market is showing resilience despite not being in a strong upward trend, with a significant test approaching [1] - Investors are focused on the upcoming Federal Reserve rate decision, with rising optimism that a rate cut is likely, contributing to a recovery in major indexes [2][4] - The "Magnificent Seven" tech stocks faced a potential technical correction due to concerns over AI spending, with Nvidia's recent earnings report failing to alleviate these fears [3][8] Group 2 - Sectors previously underperforming, such as healthcare and energy, have started to lead the market, with over 60% of S&P 500 stocks outperforming the index last month [5] - The Dow Jones Transportation Average has risen for nine consecutive days, indicating bullish sentiment for stocks when paired with a rising Dow Jones Industrial Average [6] - The Federal Reserve is facing a challenging decision regarding interest rates, with mixed signals from labor market data and a divided stance among policymakers [10][11]