Stocks surged higher in the closing days of a holiday-shortened trading week, ignited by a political resolution on raising the debt ceiling and a strong employment report.
Gerry Sparrow
113 posts
Stocks rallied last week with growing confidence over reaching a deal on raising the debt ceiling and avoiding a technical debt default by the U.S.
The week got off to a quiet start as investors waited on April's two key inflation reports, but stocks broke out of their lethargy and moved higher after consumer prices rose less than forecasted.
The stock market slipped in the wake of the latest rate hike decision by the Federal Open Market Committee (FOMC), despite solid earnings from one mega-cap tech firm and a strong employment report.
Stocks rallied this week as investors shifted their attention to the Federal Reserve's upcoming May meeting, with strong earnings from several mega-cap technology companies offsetting renewed regional banking jitters and weak economic data.
Investing involves risk, including the possible loss of principal, and it's essential to diversify and seek personalized advice to navigate market fluctuations.
Tune out the noise and focus on what you can control, like your time horizon, risk tolerance, and goals. Because I can promise you one thing: there will be several more headlines in 2023 that will cause stock prices to react.
Warren Buffett's quote, 'Remember that the stock market is manic depressive,' highlights the importance of not getting caught up in short-term market fluctuations.
The Federal Reserve is at a bit of a credibility crossroads, supervising and regulating the banking system as a means of protecting consumers is one of the Fed's most important roles.
Fresh earnings reports fueled further gains, with positive earnings surprises from several big-name technology companies that benefited the larger universe of Nasdaq-listed high-growth companies.
Is the bear market over? That's a question I've been asked a number of times in recent weeks, and my answer is the same: let's give it a little time.
The upcoming Q4 GDP reading will be closely watched to gauge the state of the economy, with implications for the potential timing of a recession.