Major U.S. stock indexes rose sharply last Friday (June 24), with the S&P 500 up 6.4% last week, as signs of slowing economic growth and a recent pullback in commodity prices dented concerns about the Federal Reserve’s plans Rate hike expectations.
The S&P 500 rose more than 3%, its biggest one-day percentage gain since May 2020. All 11 sectors of the Shanghai Composite closed up at least 1.5%.
U.S. stocks rallied last week as financial markets panicked over fears that the Federal Reserve’s rapid rate hikes to curb 40-year high inflation could lead to a recession. Investors are still weighing when the market may bottom.
Part of the move is because the sellers are running out of money, and it’s probably a little relief rally,” said Shawn Cruz, chief trading strategist at TD Ameritrade in New York.
Shawn Cruz added: “I don’t think I would encourage anyone to start betting on the bookmakers at this point, though, because we’ve seen this so many times, and those moves could be reversed very quickly.”