‘Oversold’ US stocks rebound strongly
NEW YORK : Wall Street stocks bounced back yesterday starting a holiday-shortened week on a positive note as investors debated whether the rally could signify a market comeback. After bruising losses last week, the Dow Jones Industrial Average finished up 2.2% at 30,530.25. The broad-based SP 500 jumped 2.5% to close at 3,764.79, while the tech-rich Nasdaq Composite Index also won 2.5% to 11,069.30. Analysts described the market as primed for a rally after heavy losses for most of 2022 that have left stocks “oversold” on a short-term basis. A series of aggressive interest rate increases by the Federal Reserve and other central banks have exacerbated worries about a recession. Goldman Sachs analysts now see a 48% probability of a recession in the next two years compared with 35% previously, according to a note released late yesterday. “The question becomes: Is this another bear market rally, which means it’ll last for a little bit of time and then roll over and hit new lows, or is it the bottom, meaning a more sustained rally is going to follow,” said Adam Sarhan of 50 Park Investments.
‘Oversold’ US stocks rebound strongly
NEW YORK : Wall Street stocks bounced back yesterday starting a holiday-shortened week on a positive note as investors debated whether the rally could signify a market comeback. After bruising losses last week, the Dow Jones Industrial Average finished up 2.2% at 30,530.25. The broad-based SP 500 jumped 2.5% to close at 3,764.79, while the tech-rich Nasdaq Composite Index also won 2.5% to 11,069.30. Analysts described the market as primed for a rally after heavy losses for most of 2022 that have left stocks “oversold” on a short-term basis. A series of aggressive interest rate increases by the Federal Reserve and other central banks have exacerbated worries about a recession. Goldman Sachs analysts now see a 48% probability of a recession in the next two years compared with 35% previously, according to a note released late yesterday. “The question becomes: Is this another bear market rally, which means it’ll last for a little bit of time and then roll over and hit new lows, or is it the bottom, meaning a more sustained rally is going to follow,” said Adam Sarhan of 50 Park Investments.