Steve Sosnick, Interactive Brokers’ chief strategist, discusses the S&P 500 and if he sees the current momentum continuing in the stock market.
Sosnick sees solid momentum behind the current market rally. Corporate earnings are solid and the US Federal Reserve has backed off further rate hikes.
Photo Credit: Lukas Schlagenhauf via Flickr Creative Commons
The earnings beat rate is a ho-hum 59%
This week’s rally that sent the S&P 500 to multi-year highs also kept transportation stocks from reaching new multi-year lows. That’s huge news!
China’s strategy, Fed inflation targeting, emerging market contagion, end of new stimulus, and the Ukraine conflict were all on our radar last year, and some of them weighed on markets at times in 2023.
Fed policy has a heightened data dependency, leading to increased volatility in the bond market. Even though rate cuts remain the odds-on favorite for later this year, investors should heed the tenor of recent Fed-speak, which reinforced the notion of rates being higher for longer.
