The S&P 500 experienced a slight decline of 0.1% over the past week, marking its second consecutive weekly drop, while the Dow Jones Industrial Average fell by 1.7%. This downturn was influenced by rising global bond yields, with the 10-year Treasury yield reaching its highest point in 19 years, and a 25 basis point increase in the U.S. Federal Reserve's benchmark interest rate.
As a result, several stocks are now considered oversold, meaning they may be due for a price bounce. Notably, Boeing's stock, with a relative strength index (RSI) of 25, dropped over 5% after CEO Kelly Ortberg indicated delays in stabilizing 737 Max production, leading to a year-to-date decline of approximately 9%.
Bank of America also fell into oversold territory with an RSI of 28, as shares decreased by 8% following a forecast of over a 10% drop in investment banking fees for the third quarter, according to CEO Brian Moynihan. Wynn Resorts, with the lowest RSI of 17, saw its shares fall more than 5% to a new 52-week low, down about 31% in 2026.
Conversely, energy stocks like Marathon Petroleum have entered overbought territory, with an RSI of 87, after shares surged over 7% to a record high of $428, driven by rising oil prices following a drone attack on Saudi Arabia's East-West pipeline. Year-to-date, Marathon Petroleum's stock has increased by 161%.
Other energy companies such as Valero Energy and Phillips 66 are also noted as overbought