In CNBC’s article “S&P 500, Nasdaq post eighth positive session as stocks extend their winning run,” Alex Harring quotes Greg Marcus, managing director of UBS Private Wealth Management, saying, “The market has almost fully recovered from the overblown recession fears earlier this month, we expect volatility to remain high for the rest of the year.” On Monday, stock markets rose as investors prepared for the much-anticipated Federal Reserve meeting later this week. The Dow Jones Industrial Average gained 236.77 points, or 0.58%, ending at 40,896.53. The S&P 500 and Nasdaq Composite also saw increases, climbing 0.97% and 1.39%, respectively, to close at 5,608.25 and 17,876.77. This marks the eighth straight day of gains for both the S&P 500 and Nasdaq, showing a significant recovery from recent market ups and downs.
This positive trend comes after a shaky start to August, driven by worries about a possible recession due to weak economic data and concerns over the Federal Reserve’s plans for interest rates. On August 5, the S&P 500 had its worst day since 2022 during a global market sell-off. However, recent economic reports have offered some relief, including stronger retail sales, a drop in initial jobless claims, and solid earnings from Walmart. Additionally, the Consumer Price Index for July showed the lowest annual inflation rate in over three years, easing some recession fears.
As the week goes on, investors are keenly awaiting more details on the Fed’s policy direction. Fed Chair Jerome Powell’s speech at the Jackson Hole symposium on Friday and the release of minutes from the Fed’s latest meeting on Wednesday are highly anticipated. Despite the recent market upturn, Greg warned that market volatility is likely to continue. He mentioned that while the market has bounced back from earlier recession fears, ongoing economic data will probably keep influencing market movements and discussions about recession risks.
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