In the face of a contentious US presidential election, Federal Reserve policy changes, and the potential threat of recession, US stocks are showing resilience and growth.
What happened: The S&P 500 index posted its third consecutive week of gains, rising 5.1% in the third quarter, its best start since 1997. The index’s market capitalization also crossed the $50 trillion milestone for the first time. time.
Surprisingly, these gains were not largely driven by Big Tech companies. The Nasdaq 100 index rose a modest 1.7% in the quarter, while the equal-weighted S&P 500 rose nearly 9%, Bloomberg reported.
Mary Ann Bartels, chief investment strategist at Sanctuary Wealth, expressed a bullish outlook on stocks, predicting the S&P 500 will end the year at 6,000, up about 4.6% from Friday’s close.
This optimism is reflected in trading data from Goldman Sachs Group GS, which reveals three times more bets on tech stocks to rise than to fall.
ALSO READ: As President Trump launches $100,000 luxury watch, wife Melania Trump speaks out on rising inflation: ‘The country is suffering and people can’t afford essentials for their families. ”
However, concerns remain. The New York Fed says a recession remains likely over the next 12 months as the Fed strives for a soft landing after a period of rapid inflation and aggressive interest rate hikes.
Despite these risks, the consensus is that stable economic growth is expected. The Atlanta Fed’s GDP Now model projects real gross domestic product to grow at an annualized rate of 3.1% in the third quarter, up from 3% in the second quarter.
Why it matters: Investors are now shifting their focus to the coming weeks, with important employment data, a wave of earnings for major US companies, the US presidential election on November 5th, and the Fed’s next move in November. Interest rate determination is scheduled. 7. These events will undoubtedly impact market trajectory and investor sentiment in the short term.
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