U.S. Stocks Rebound Sharply After Morning Sell-Off on January 29, 2026

U.S. equities mounted a strong intraday recovery on January 29, 2026, reversing early losses as investor sentiment stabilized amid easing Treasury yield pressure and dovish Fed commentary. The S&P 500 erased a 1.2% morning decline to close up 0.8%, while the Nasdaq Composite gained 1.4% after dipping nearly 2% at the open. The rebound followed remarks from Fed officials suggesting no imminent rate hikes, calming fears of tighter monetary policy. Ten-year Treasury yields retreated to 4.15% from an intraday high of 4.32%. Market breadth improved significantly in afternoon trading, with over 70% of S&P 500 components finishing higher. Energy and tech sectors led gains, buoyed by firmer oil prices and Nvidia’s post-market earnings preview signaling strong AI demand.