SPX: cancelled recession
Fear of recession was one of the major drivers behind the US equity market's significant drop two weeks ago, however, Monday brought a change in the mood. The markets started to be relaxed that the recession time is still not on the schedule of the US economy, and that they might continue with an optimistic view on future earnings. Still, something has changed in terms that many investors are currently more precautious when returning to the equity market is in question. Analysts are currently revisiting their projections, in which sense, BCA is projecting that the S&P 500 might reach 3.750 by 2025 amid slowdown in the world economy and collapse of the carry trade in the Yen. At the same time analysts from Wells Fargo noted to investors “buy stocks, not the stock market”, remaining with a forecasted 5.535 for the S&P 500 as of the end of this year.
The S&P 500 performed in a strong manner during the week, with a move from 5.130 points up to 5.344 as of the end of the week, gaining around 4% for the week. Although it sounds like a huge weekly gain, it should be taken into consideration that previously, the index lost 10% from its recent all time highest level. The tech companies were again the ones which led the market to the upside. META was up by 5% on Friday, while pharmaceutical Eli Lilly was trading higher by 11%, due to revised earnings to the upside till the end of this year. Although the recession is cancelled for the moment, still, some precaution in further anticipation of the S&P 500 moves to the upside should be taken with precaution.
The S&P 500 performed in a strong manner during the week, with a move from 5.130 points up to 5.344 as of the end of the week, gaining around 4% for the week. Although it sounds like a huge weekly gain, it should be taken into consideration that previously, the index lost 10% from its recent all time highest level. The tech companies were again the ones which led the market to the upside. META was up by 5% on Friday, while pharmaceutical Eli Lilly was trading higher by 11%, due to revised earnings to the upside till the end of this year. Although the recession is cancelled for the moment, still, some precaution in further anticipation of the S&P 500 moves to the upside should be taken with precaution.
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