New York ∙ There are reports coming out of Wall Street that give fresh impetus to the stock market. A new S&P (Savings and Poor’s) 500 report is reversing warnings that the country is headed for recession. The US economy is on the road to recovery after a nine-month downward spiral, mainly driven by a surge in the technology company stock market. President Joe Biden, who is seeking a second term, is expected to benefit in the primaries that begin six months later if the stock market rally continues.
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The index rose 0.6% to a 20% gain from last October’s low, which means that the main part of Wall Street has recovered from the bear market and started to climb. The index, which had fallen by more than 25.4% nine months ago, is now recovering. This was a shorter period than a typical bear market. The S&P Dow Jones index has seen less than average losses these days.
The Dow Jones Industrial Average rose 168 points, or 0.5%. The overall Nasdaq rose 1%. This is routine. Chipmaker Nvidia and other big tech stocks have always been big contributors to Wall Street’s gains.
Declaring the end of a bear market may seem arbitrary. Different observers give different definitions. But these are valuable signs for investors. It’s also a reminder that investors who can hold on to bad conditions can reap the benefits when the market wakes up.
Adding to the woes of investors last year were losses in stocks and bonds alike. This has not happened in decades. A recession was avoided thanks to gains in employment and generous consumer spending. Higher interest rates are expected to dampen the economy and curb inflation to some extent. The industry expects no further interest rate hikes when the Federal Reserve meets next week. But they know that the interest rate will be raised one more time in the month of July. Economists warn that the bear-grazing market has given way to the bulls, but the challenges are not over.
English Summary: Bulls will once again rule the stock market
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2023-06-12 10:22:27
