Bulls Regain Control After a Volatile Session

It seems that Friday turned out to be a quiet victory for the bulls. The S&P 500, which dipped below its 50-day moving average at 6,669 in early trading, managed to claw back above that key technical level by the close—extending a streak of successful rebounds that has defined the market’s rally since April.

The morning was anything but calm. By midday, the Dow, Nasdaq, and S&P 500 were down 0.9%, 2.1%, and 1.3%, respectively, dragged lower by renewed selling in mega-cap and growth stocks alongside mounting concerns about a slowing economy. A historic low in the University of Michigan Consumer Sentiment Index and widespread flight cancellations linked to the ongoing government shutdown only added to the gloom.

Then, as has happened so many times during this year’s rally, buyers returned. A familiar buy-the-dip wave took hold in early afternoon trading, lifting sentiment and pushing the major indices steadily higher into the close.

By day’s end, nine of eleven S&P 500 sectors had turned positive. Energy stocks led with a 1.6% gain, followed by utilities, materials, real estate, and consumer staples—each up more than 1.3%. The only laggards were communication services (-0.8%) and information technology (-0.3%), though both finished well off their lows.

Optimism also flickered briefly in Washington, after reports suggested Democrats were prepared to vote to reopen the government in exchange for a one-year extension of Obamacare subsidies. While a quick rejection from Republican leaders followed, the market barely flinched—finishing at session highs, a sign of improving investor confidence and perhaps quiet optimism for a weekend deal.

Still, the week wasn’t easy. Growth and AI-related names faced heavy selling after a string of disappointing earnings. Take-Two, The Trade Desk, and Microchip each lost between 5% and 8% on Friday alone, while Tesla dropped 3.7% after shareholders approved CEO Elon Musk’s massive compensation plan, potentially worth up to $1 trillion.

Even long-time leaders showed strain. NVIDIA battled back from a 5% intraday loss to close flat, but still ended the week down 7.1%. Microsoft notched its eighth straight decline, slipping 4.1% for the week. As a group, large-cap growth names underperformed sharply: the Vanguard Mega-Cap Growth ETF lost 3.1%, and the Russell 3000 Growth Index slid 3.3%, compared with a 0.4% drop in the Value Index and just a 0.2% decline in the equal-weighted S&P 500.

In the end, the day’s late-session rebound offered a glimpse of resilience in what has been a volatile, sentiment-driven market. For now, the bulls still have the upper hand—so long as the 50-day support line continues to hold.

Our FTinvest 11 model portfolio outperformed its benchmarks on Friday, closing up 0.97% at 863.30, marking another strong session in a week defined by resilience and relative strength. Unlike the major U.S. indices, which wavered through intraday swings, FTInvest 11 traded in positive territory from the opening bell and maintained that momentum through the close.

The index benefited from broad participation, with several key components extending their weekly gains and cushioning against volatility that weighed on the broader market. While the S&P 500 slipped 1.63% for the week, FTinvest 11 rose 2.67%, underscoring its distinct positioning away from the mega-cap-heavy U.S. benchmarks that have recently faced profit-taking and valuation pressure.

On a year-to-date basis, FTinvest 11 continues to outperform meaningfully—up 18.56% versus the S&P 500’s 14.4% gain. The week’s advance further solidified that margin, reflecting steady relative strength across portfolio holdings despite uneven sector dynamics in the broader market.

The sustained upside through the session hints at improving sentiment within the portfolio’s core holdings, while the weekly outperformance reinforces FTinvest 11’s durability amid broader market consolidation. With technical momentum intact and leadership breadth widening, the index remains well-positioned heading into the new week.