Market Volatility Continues Amid Fed Signals and Bank Warnings

The stock market rally rebounded strongly Thursday morning, but the major indexes slashed intraday gains, while the Russell 2000 hit a fresh 2023 low as Moody's Investor Service warned of wider bank contagion and economic fallout. Bank stocks were big losers Thursday. On the upside, Meritage Homes and KBH stock flashed buy signals amid strong KB Home earnings and generally strong action among builders. The VanEck Semiconductor ETF cleared a buy point, offering a way to play the chip sector with NVDA stock and many hot semis extended. Investors should remain cautious as the rally attempt remains divided and volatile, with the banking sector a major negative.