The US stock market is surging higher every month defying gravity despite concerns over tariffs, trade wars, and conflicts. The first litmus test came after Liberation Day early April where the markets tanked more than 2,500 points. The second test came when Trump openly instigated tariff wars taking on China, the European Union, and various other countries. The final scrutiny came when the US entered the Iran-Israel conflict by bombing three nuclear sites in the Islamic Republic.
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The Trump and Powell dispute is also a test to investors but the US stock market rallied despite the odds. The development indicates that Trump’s prowess and the ‘Teflon Don’ enigma are making the markets remain steady and rally. While analysts have been warning of a recession and downturn, the markets are going in the opposite direction. The sheer scale of the surge is turning doubters into believers as the market is booming.
The US Stock Market Is Booming Despite All the Odds
Dow Jones Industrial Average is up 4.02% year-to-date while Nasdaq Composite rose 5.65% during the same period. The S&P 500 index also surged 5.73% YTD making the three indexes brimming with positive sentiments. It is receiving heavy buying sentiments from both retail and institutional investors. If the US stock market rallied even during turbulent times, imagine what it can do when the times are normal.
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Wall Street veteran analyst Sam Stovall, who was the Chief Investment Strategist at S&P Global for 27 years said that the US stock market has recovered all its losses. “The recent correction recovered all that was lost in only 80 calendar days, versus the traditional 236 days for all 25 corrections (declines of 10.5% to 19.9%) since WWII. Investors shouldn’t be too surprised by this speedy recovery, due to the swiftness of the initial selloff,” he said to The Street.