As Wall Street ended a bear market that began in January 2022, the “Standard & Poor’s 500” index rose on Thursday, completing its upward journey of about 20 percent since its last decline on Oct. 12, 2022.
The index closed at 4,293.93 points on Thursday, supported by gains in key tech stocks, crossing the line between bearish and bullish markets, and investors are sure to be in a mood of fear and greed buying into the index. CNN – This measures investors’ willingness to take risks, which peaked on Thursday.
Surprisingly, markets have been resilient over the past nine months as losers in 2022, such as tech and media, have bounced back in hopes that the worst is over.
Stocks also rebounded last week due to the end of the US debt ceiling crisis and hopes that the Federal Reserve will pause interest rate hikes at its June meeting.
However, analysts fear that the rally will be short-lived. “We’re very late in the economic cycle and it’s starting to slow down,” Sameer Samana, senior global market analyst at Wells Fargo investment firm, told CNN. “A recession. Maybe later this year.”
Samana explained that there have been dramatic events where stocks have crossed over from past bull markets, such as war and the banking and credit crisis in Europe, and he believes the markets are now in uncharted territory.
It was the first recession to coincide with a Wall Street boom, and he said there was “no desperation” in this market.
(Nicole Goodkind – CNN)
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