P 500 snapped back and is heading toward its best month since November 2020. Big tech led gains on Friday, with Amazon and Apple set to add nearly $US170 billion in market value. Higher revenues from the pair of iconic powerhouses countered fears about a slowdown in profits at time when the industry is increasingly rethinking its staffing needs.
In fact, Bloomberg Intelligence’s fair-value model suggests a modest recession may have been priced in following this year’s stock-market selloff. That means a price recovery could emerge with an earnings trough in the second half of 2022 “The fact that we have priced in a whole lot of slowdown already, that too has just de-risked the landscape. And so I think what can happen for the next couple of weeks is that the technical momentum really keeps moving stocks higher while we wait for the next Fed move or the next inflation print.
Despite the big rebound in stocks this month, several market watchers are still sceptical about a sustained rally due to the many economic challenges and the fact that the market hasn’t gotten cheap enough to call it a bottom.