It’s business as usual in the US as recession worries fade, leading to the stock markets returning to the greener side of the spectrum. In the last five trading days alone, the US stock market has rallied, generating decent returns to investors.
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Stock Market Performance Amid Fading Recession Worries
Dow Jones Industrial Average, Nasdaq Composite & S&P 500 Index
The Dow Jones Industrial Average is up 1,100 points, surging nearly 2.8% weekly. The Nasdaq Composite climbed over 800 points in five days, surging almost 5% in the charts.
In addition, the closely watched S&P 500 index surged more than 200 points with an uptick of nearly 4%. This is the stark opposite of what happened early this month when the stock markets crashed as fears of a US recession loomed. The markets wiped away nearly $2 trillion in two days, and the bloodbath spilt over the Asian stock markets.
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Investor Reactions
The knee-jerk reaction caused investors to sell their holdings early, while others had the opportunity to buy stocks at discounted prices. The fears of a recession in the US are now minimal, with investors’ confidence soaring. If the bullish momentum continues this month, the markets could reclaim their lost ground.
JP Morgan Adds Fuel To The Fire As US Recession Worries Fade
Leading investment bank JP Morgan has added fuel to the fire, predicting that the US has a 35% chance of being hit by a recession in 2024. “This modest increase in our assessment of recession risk contrasts with a more substantial reassessment we are making to the interest rate outlook; JP Morgan now sees just a 35% chance of the Federal Reserve and its peers keeping interest rates “high-for-long,” wrote the leading investment bank with economists, headed by Bruce Kasman.
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However, the markets have not paid heed to JP Morgan’s warning, and it is business as usual in the stock market. The US recession fears are now a part of yesterday as investors have turned bullish.