In the face of a contentious US presidential election, changes in Federal Reserve policies and potential recession threats, US stocks have shown resilience and growth.
What happened: The S&P 500 Index has posted its third consecutive week of gains, rising 5.1% in the third quarter, marking its best start to the year since 1997. The index's market capitalization has also surpassed the $50 trillion milestone. dollars for the first time.
Surprisingly, these gains were not significantly driven by Big Tech companies. The Nasdaq 100 index saw a modest 1.7% gain during the quarter, while the equal-weighted version of the S&P 500 rose nearly 9%. information Bloomberg.
Mary Ann BartelsChief investment strategist at Sanctuary Wealth, expressed his bullish outlook on stocks, predicting the S&P 500 will end this year at 6,000, up about 4.6% from Friday's close.
This optimism is reflected in trading data from Goldman Sachs Group Inc. G.S.which reveals that bets on information technology stocks rise three times as much as those that fall.
Also read: As Trump launches a $100,000 luxury watch, his wife Melania Trump talks about rising inflation: 'The country is suffering, people can't buy the necessities for their families'
However, concerns remain. The Federal Reserve is struggling to orchestrate a soft landing after a period of rapid inflation and aggressive rate hikes, and the likelihood of a recession in the next 12 months remains high, according to the New York Fed.
Despite these risks, consensus expectations point to stable economic growth. The Atlanta Fed's GDPNow model forecasts that real gross domestic product will rise at an annual rate of 3.1% in the third quarter, up from 3% in the second quarter.
Why it is important: Investors are now shifting their attention to the coming weeks, which will bring crucial jobs reports, a wave of earnings from major US companies, the US presidential election on November 5 and the upcoming Federal Reserve interest rate decision. on November 7th. These developments will undoubtedly influence the trajectory of the market and investor sentiment in the short term.
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