Indexes staged a real rally

U.S. stocks shook off an early selloff this week and turned it into a broader rally, with the Nasdaq Composite posting a 10th straight gain on April 14. (finance.yahoo.com) By Tuesday’s close, the S&P 500 had risen 1.1%, the Nasdaq had jumped nearly 2%, and the Dow Jones Industrial Average had added 0.6%. Yahoo Finance reported the Nasdaq’s streak reached 10 sessions, while Barron’s said it was the index’s longest such run since 2021. (finance.yahoo.com) (barrons.com) The move built on a reversal from April 10, when stocks recovered from early losses after headlines pointed to direct negotiations involving Israel and Lebanon and possible progress around the Strait of Hormuz. That day, the S&P 500 rose 0.6% and the Nasdaq gained 0.8%, extending both indexes to seven straight advances. (finance.yahoo.com) A “follow-through day” is a chart signal traders use to judge whether a rebound has real buying behind it, not just a one-day bounce. Investor’s Business Daily said the S&P 500 registered that signal on April 8, and by April 15 it described the index’s action since then as “picture-perfect.” (investors.com 1) (investors.com 2) Investor’s Business Daily defines a follow-through day as a gain of at least 1.25% in a major index on heavier volume than the prior session, usually on Day 4 or later of a rally attempt. The firm says that signal is used to confirm that a market correction may be giving way to a new uptrend, though about 25% to 30% of such signals fail. (investors.com 1) (investors.com 2) The latest leg higher came even as traders were still parsing war-related headlines and oil risk in the Middle East. Yahoo Finance said softer-than-expected March producer price data also helped sentiment on April 14, with the monthly increase reported at 0.5% versus economist expectations for 1.1%. (finance.yahoo.com) Leadership narrowed and then widened in ways traders usually watch closely. Charles Schwab said tech and small-cap stocks led again on April 14, eight of the 11 S&P 500 sectors finished higher, and communication services gained on strength from Meta Platforms and Alphabet. (schwab.com) The rebound also repaired a lot of technical damage from the prior slide. The Wall Street Journal said the Nasdaq had recovered all the ground it lost since the start of the Iran war and was back in positive territory for 2026 after gaining more than 12% during the 10-session streak. (wsj.com) By Wednesday morning, April 15, Yahoo Finance historical data showed the Nasdaq Composite trading near 22,961 and the S&P 500 near 6,824. The rally had not erased geopolitical risk, but the market’s message over the previous week was that buyers kept stepping in on dips instead of backing away. (finance.yahoo.com 1) (finance.yahoo.com 2)