The S&P 500, Nasdaq 100, and Dow Jones are all battling key resistance.
US stocks have been on a solid run in the last seven weeks. The Nasdaq reached a new two-year low the day after the FOMC rate decision last month, and the S&P 500 set it’s low the following day, as the middle of June marked the bottom for stocks.
Bulls have been powerful and dominant ever since. The rise that initially seemed to be short-covering has continued and is now in its ninth week, with the S&P 500 rising by as much as 14.62 percent and the Nasdaq 100 growing by as high as 20.92 percent during that time. The Nasdaq is in a bull market with a 20% return.
The conversation is centered on Fed policy and the likelihood that the bank will make a turnaround. The expectation that the Fed could halt its rate rise approach to allow the rate hikes have already made more time to take effect as US economic data began to improve in Q2 was growing. At the most recent FOMC press conference, Chair Powell made a few remarks that offered bulls’ optimism. Judging by the market reaction—equities are soaring after that rate hike—it would seem that there is some evidence to back that notion.
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