Bloomberg: With little help from Federal Reserve Chair Jerome Powell’s assurances, stocks rose over the weekend in a volatile financial market that large-scale growth will remain out of the table for the time being, despite readings of hot inflation over the past few days.
For a market plagued by fears that more aggressive fiscal austerity could lead the economy into recession, Powell’s remarks have calmed the soothing nerves and created a return to the beat-down risk assets. Despite strong gains on Friday, many traders are still unsure whether equities have reached the bottom after selling িয়ে 10 trillion below the US stock price in 18 weeks. Instead, they say investors should still be prepared for volatility because the Fed’s ability to cope with price pressures without a tough landing could depend on factors beyond the central bank’s control.
After sinking nearly 20% off a record and flirting with bear markets, the S&P 500 saw a broad-based rally on Friday. It still posted a sixth week of fall – the longest rate trend since June 2011. Apple Inc., Microsoft Corp. And the Nasdaq has surpassed the 100 in giants like Amazon.com Inc. Elon Musk, meanwhile, has been squabbling over his offer to Twitter Inc., first claiming that his bid is “temporarily stuck” and then maintaining that he is “still committed” to the deal – sending the social-media giant into a tailspin. Tesla Inc. jumped. The treasury depreciated with the dollar.
During another turbulent week for the financial markets, some prominent voices on Wall Street were thinking about the prospects for stocks after the strong sell-off. Peter Oppenheimer of Goldman Sachs Group Inc. said on Tuesday that inflation and the recklessness of reckless central banks have already created an opportunity to buy this route with headwinds like pricing. Meanwhile, Morgan Stanley strategist Michael Wilson noted that equities are still “not priced for this recession বৃদ্ধি rising from current levels.”
According to Lindsay Bell, Ally’s chief market and money strategist, the Cboe volatility index has five tailtail indicators used to move stocks downward, including a spike, which substantially increases the number of calls and maintains a depressing market sentiment. Although the VIX is hovering around 30, bear markets in the past have moved above 45.
Mark Hefele, chief investment officer at UBS Global Wealth Management, writes, “Many speculations have already been removed from the market. “So, we advise against a quick departure. Our central situation is that a recession will be avoided in the next 12 months. However, investors should be prepared for high levels of volatility. “
Jim Paulsen, chief investment strategist at Leuthold Group, told Bloomberg Television and Radio: “We have definitely revalued the stock market in a big way. “The really big fear on Main Street, on Wall Street, I think, is the combination of good running fundamentals – with a strong balance sheet for the family, the corporate sector and the banking industry – I think it’s a ‘dynamite’ combination for you. To buy. “
“Investor sentiment is at an all-time high and technical indicators are generally negative,” said Mark Hackett, head of nationwide investment research. “It reflects the level of pessimism embedded in the market, creating a bounce stage from the over-selling level, which can be expected in the coming weeks.”
Fawad Razzakzada, an analyst at Citi Index and FOREX.com, wrote, “The market had a calm idea, but again without any basic news it is probably down.” “Stocks have struggled to sustain any recovery efforts as traders have been quick to take rebound profits against a bearish macro background.”
Expectations of a technical bounce on the S&P 500 are building after a relentless slide in the gauge over the past few weeks. One potential zone of support comes from a cluster at the Fibonacci level – which captures the rally retreat to the American equity benchmark from the 2020 Covid crash low.
Equity, bonds, cash and gold all saw flows in the week ending May 11, Bank of America Corporation strategists led by Michael Hartnett wrote in a note quoting EPFR global data. At 1 1.1 billion, technology stocks have suffered their biggest lifting so far this year, second only to finances, losing $ 2.6 billion.
“The definition of true capitalization is that investors sell what they like,” Hartnett said, referring to assets such as big technology, for example. “Fear and disgust suggest that stocks have a tendency for an upcoming bear-market rally, but we don’t think the bottom line has been reached.”
Some of the major rice in the market:
The S&P 500 rose 2.4% to 4 p.m., New York time
Nasdaq 100 rose 3.7%
The Dow Jones Industrial Average rose 1.5%
The MSCI World Index rose 2.3%
The Bloomberg Dollar Spot Index fell 0.3%
The euro rose 0.2% to 0 1.0401
The British pound rose 0.3% to 22 1.2241
The Japanese yen fell 0.8% to 129.32 against the dollar
Yields on the 10-year Treasury rose nine basis points to 2.93%
Germany’s 10-year yield rose 11 basis points to 0.95%
Britain’s 10-year yield rose eight basis points to 1.74%
West Texas Intermediate crude rose 4% to $ 110.36 a barrel
Gold futures fell 0.9% to 1,808.40 an ounce