During the S&P’s seven consecutive weeks of losses, from Friday’s close of April 1 to May 20, the benchmark index lost 14.2% of its value and threatened to confirm a bear market from its all-time high of Closing on January 3.
“The market has already discounted a lot of the negative news, many of which came at once”said Keith Buchanan, portfolio manager at GLOBALT in Atlanta. “Now we have absorbed that news and the actions that the Fed is going to take, and we are finishing the earnings season,” he expanded.
“It was inevitable that the losing streak would end,” said Tim Ghriskey, senior portfolio strategist at Ingalls & Snyder, adding: “Corrections and bear markets are followed by bull markets”.
Analysts agree that corporate earnings and strong economic indicators have fueled expectations that the Fed can contain the highest inflation in decades without cooling the economy into contraction.
Data released on Friday showed better-than-expected consumer spending and they seemed to confirm that inflation, which has dented corporate earnings forecasts and weighed on investor sentiment, has peaked.
Based on preliminary closing data, the S&P 500 gained 100.43 points, or 2.47%, to 4,158.49, while the Nasdaq advanced 390.30 points, or 3.32%, to 12,130.95. . The Dow Jones Industrial Average rose 574.52 points, or 1.76%, to 33,211.71.
Trading volumes were thin ahead of the long weekend as US stock markets close on Monday to celebrate Memorial Day.
Source: Ambito
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