Since the market reached its most recent low on 12 October 2022, finally, Wall Street is feeling bullish again.
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On Thursday, Wall Street ended the day in a bull market, marking a 20% surge and bringing an end to the bear market. However, the index closed at 429393 and crossed the threshold, separating the bear market from the bull market.
Now, Investors are in a buying mood. Over the past nine months, the market has remained resilient. Tech and media industries have seen a bounce back from a disastrous year in the hope that difficulties are over for them.
The booming AI has increased interest in tech stocks, dominating the S&P 500. After the horrible years for the tech industry, ChatGPT has made AI attractive in Silicon Valley.
Investors have begun placing big bets on several renowned tech industries, including Nvidia, Google, Amazon, Apple, Meta, and many more. They are hoping that they can bring a new tech revolution with Artificial intelligence.
However, the market has gained momentum over the past week due to the debt ceiling bill crisis. According to the analysts, this could be a short-lived rally, biting investors. Jobs have been added by the US economy, but the pace is very slow.
Consumers are spending. But they are not spending on expenses; instead, they focus on necessities like food and leisure activities. And it is going to be a recipe for long-term market success.
According to a chief investment strategist, Sam Stovall, it will not likely depend on the Federal Reserve interest rate policy whether we stay in a bull or bear market.
He said since the Fed began making changes in Federal fund rates in 1989, there have been sixteen times when the Fed either decided to skip increasing rates or ended its rate hiking process.
As a result to it, the S&P 500 rose an average of 3.6% and gained 88% in price. Stovall added that the Fed skipped hiking in June does not guarantee whether the market has further upside potential or not.