How US stocks rose 20% from their lows, and where they might be going

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U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows - one definition of a bull market.

Traders work on the floor of the New York Stock Exchange in New York City, U.S., November 15, 2022. REUTERS/Brendan McDermid

NEW YORK, June 9 - U.S. stocks have defied fears of a recession, a banking crisis and soaring Treasury yields to rise 20% from their October lows -The benchmark S&P 500 index closed at a low of 3,577.03 on Oct. 12, 2022, down 25% from its all-time high after the Federal Reserve unleashed a series of bruising interest rate increases to fight decades-high inflation.over the economic outlook and a rate hiking cycle that appears to be nearing its end.

While markets seldom rise in a straight line, the S&P 500's journey from the bottom took 164 days - the longest 20% climb from a bear market low in five decades. Among the factors holding stocks back was a surge in Treasury yields to their highest levels in decades that dulled the allure of equities by offering investors the potential to earn attractive income in government-backed bonds.

A crisis that saw the biggest bank busts since the Great Recession also shook investor confidence, as did worries over a potentiallyThe narrow breadth of the S&P 500's rally has been a concern for some investors, with just seven stocks - Alphabet

 

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