In a striking departure from the choppy performance in recent weeks, all three major indices were in positive territory
Wall Street stocks were back in rally mode on Monday, shrugging off recent bouts of volatility and embracing hopes for brighter days as the pandemic ebbs
High inflation readings, chaos in the cryptocurrency markets and supply chain challenges as major economies reopen have stymied equities in recent weeks, but concerns about their effects on business took a back seat as this week’s trading got underway.
All three major indices were in positive territory the entire session – a striking departure from the choppy performance in recent weeks.
London and Paris also advanced, while Frankfurt was one of a number of exchanges shut owing to a public holiday. Asian bourses were mixed.
It’s a bull market, said Maris Ogg of Tower Bridge Advisors, crediting continued monetary stimulus from central banks as well as the return of normal life to the rise in indices.
Briefing.com said the tranquil trading pattern on Wall Street suggest investors are back in “fear of missing out” mode.
In US economic data, traders this week will get updates on new home sales, consumer confidence, durable goods, and the latest readings on personal consumption expenditures, which will indicate the degree to which the rebound and Washington’s spending policies are pushing up prices.
Stocks have been volatile in part due to fears inflation could lead to an abrupt shift in Federal Reserve policy – despite the central bank’s assurances to the contrary. But some analysts believe the market has already priced in this risk, while others point to an upside from some inflation.
The stock market loves three or four per cent inflation. It gives companies pricing power, which we haven’t had for the past 10 years in what was ostensibly an inflationary environment, Ms Ogg said. A little bit of inflation is good for corporate earnings.
