Finance

Wall Street’s Comeback: How the S&P 500 and Nasdaq Bounced Back Amidst Market Volatility

U.S. stocks rebounded Thursday, recovering from a sell-off, despite underlying selling pressure and market volatility.

October 23, 2025, 10:53 PM

A close-up, stylized photograph of the "WALL ST" street sign in New York City, with the "BROAD ST" sign below it. In the blurred background, American flags hang on the facade of the New York Stock Exchange.

The iconic Wall Street sign stands at the heart of New York City's Financial District, with the New York Stock Exchange and American flags visible in the background. By Miami Daily Life / MiamiDaily.Life.

Executive Summary

Major U.S. stock indexes rebounded solidly on Thursday, recovering from their 21-day moving averages after a previous day’s sell-off.

Despite the recovery, a clustering of distribution days, including five for the S&P 500 in October, indicates persistent underlying selling pressure in the market.

Investors are navigating a complex market environment influenced by corporate earnings reports and ongoing external uncertainties, which contribute to daily volatility.

The Story So Far

Current market volatility, marked by recent sell-offs and a clustering of distribution days in the S&P 500, is largely driven by the ongoing corporate earnings season and persistent headline risks that continue to influence investor sentiment.

Why This Matters

Despite a solid rebound in major U.S. stock indexes, the market is exhibiting a fragile recovery, with persistent underlying selling pressure indicated by multiple distribution days. This suggests that while daily gains can occur, investors should anticipate continued volatility as they navigate ongoing corporate earnings reports and various external headline risks.

Who Thinks What?

Some market observers interpret the solid rebound of major U.S. stock indexes as a sign of the market’s resilience.

Conversely, the clustering of distribution days in the S&P 500 indicates persistent underlying selling pressure in the broader market, despite daily recoveries.

Major U.S. stock indexes rebounded solidly on Thursday, recovering from their 21-day moving averages, following a sell-off the previous day. This movement occurred as earnings season remains a central focus, alongside ongoing headline risks contributing to market volatility.

Market Dynamics

The market’s recovery suggests a degree of resilience, despite a clustering of distribution days observed in both the S&P 500 and the Nasdaq. Distribution days are characterized by higher trading volume on a down day, indicating significant selling pressure.

Specifically, the S&P 500 recorded five distribution days throughout October. This trend highlights persistent underlying selling pressure in the broader market, even amid daily recoveries.

Outlook

Investors are navigating a complex environment characterized by corporate earnings reports and various external uncertainties. These factors continue to influence daily market movements and overall sentiment.