US stocks push toward longest weekly rally this year

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Gains in Apple and Tesla helped pace New York higher overnight, into overbought territory, as consumer sentiment remained strong.

Stocks are finishing the week on solid footing, with traders assessing whether an inflation slowdown could soon make the Federal Reserve reduce the pace of its most-aggressive tightening campaign in decades and avoid a hard landing.

As equities pushed higher, Wall Street’s fear gauge crumbled. The Cboe Volatility Index slumped back below 20, the average level since its inception. The VIX is on pace for its eighth straight week of declines, the longest such stretch since 2019.P 500’s 14-day relative strength index topped 70 -- which is seen by some traders as one indication of an overbought market.

For now, flows have been robust. Global equity funds lured $US7.1 billion in the week through August 10, Bank of America strategists led by Michael Hartnett wrote, citing EPFR Global data. Bond funds saw inflows of $US11.7 billion, while $US4.3 billion was pulled out of cash.

 

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overbought? just as many were sold as were bought

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