The stock market delivered its strongest performance since the start of April 2024 on Thursday, 9 May 2024, as hopes for US Federal Reserve rate cuts prevail.
Stock Market Lifts Its Head After Dry Spell
Recent labour statistics pegged unemployment at 3.9%. Bloomberg indicated that equities gained traction after a $25bn sale of 30-year bonds and the S&P 500 crested 5,200. Analysts believe that the advance in stocks can be attributed to commodity trading advisors being modelled to buy shares this week.
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The S&P 500 almost reached a historic high as Apple Inc. (AAPL) shares increased. On the flipside, Nvidia Corporation (NVDA) was at the forefront of losses among semiconductor producers. According to Bloomberg, Wolfe Research’s Chris Senyek said:
Our sense is that the rebound has been unloved, largely because economic surprises have turned modestly negative, and we believe this is likely to lead to additional near-term upside. Looking out to year end, we expect to remain constructive on the outlook.
Economists stated that it is possible that the S&P 500 may gain a further 10% if the present rally prevails. A recent survey by 22V Research showed that 52% of investors believe that this index will increase by 10%, while 48% predict a downward trend. Bloomberg quoted Dennis DeBusschere, the founder of this company, who commented:
To the extent that conviction in the next big move in asset prices remains mixed, expect correlations to remain low and stock pricking and micro themes to dominate.
Senyek said that he thinks that stocks will remain bullish unless a recession or high inflation swings the situation.
