S&P 500 Climbs as Tech Sector Rebounds, Recession Fears Ease

The S&P 500 ended higher on Friday, recovering most of its early-week losses driven by recession fears and unwinding of yen-funded carry trades. The technology sector provided the biggest boost, and Wall Street's fear gauge subsided. Investors remain anxious ahead of the Federal Reserve's policy meeting next month.

The S&P 500 ended higher on Friday, regaining nearly all of its losses since Monday's significant downturn fueled by recession fears and the unwinding of yen-funded carry trades. The tech sector led the recovery, providing the biggest boost to the index.

Investor sentiment improved after Federal Reserve policymakers indicated that inflation was cooling, suggesting future rate cuts. "Investors are trying to find evidence of a bottom," said Robert Phipps, a director at Per Stirling Capital Management.

Despite recent volatility, major indexes remain up for the year, with significant gains driven by strong earnings in tech megacaps and optimism surrounding AI. However, investors are cautiously awaiting the Federal Reserve's next move and upcoming economic data.

(With inputs from agencies.)