Fragile Rebound: Tech Sells Off Again While Bonds and Defensives Firm Up

U.S. stocks couldn’t hang on to an early bounce. The S&P 500 slipped about 0.4%, the Nasdaq fell more, while the Dow barely eked out a gain. Under the surface, high‑growth and small‑cap names were hit hard again, even as defensive sectors and bond prices rose.

Oil above $100 and a blocked Strait of Hormuz keep the Iran‑driven energy shock and stagflation fears (high prices plus weak growth) front and center. But falling Treasury yields show markets are now worrying as much about recession risk as inflation.

Volatility is still high, market breadth is weak, and this remains the sharpest pullback since 2022, not a quick dip. The Fed is openly uncertain on the rate path and watching private credit risk, which leaves any short‑term rallies fragile around this week’s jobs, confidence and inflation data.