A new bull market in stocks has taken off, and history shows the bear narrative is falling apart, according to Fundstrat's head of research Tom Lee.
In a note on Friday, Lee pointed to the strong gains the S&P 500 in recent months, with the benchmark stock index up 5.5% over the past quarter. Stocks were up a similar amount the previous period, surging 7% in the last quarter of 2022. That's a strong signal that equities have entered a new bull market, Lee said, as stocks have historically never been in a secular bear market after two straight quarters of gains. He predicted the rally would continue to run throughout April, taking the S&P 500 higher by 4%. Previously, he"Two consecutive quarters of gains validate the start of a new bull market.
The winning quarter for the stock market comes despite a month of turmoil in March, with early-year gains nearly erased by theBut volatility stemming from SVB has ebbed as banks begin to, Lee said, which suggests the turmoil isn't going to balloon into a full-blown crisis. The bank's collapse has also ramped up pressure on the Federal Reserve to pull back on rate hikes, another bullish development for stocks. Central bankers hiked interest rates aggressively last year to control inflation, a move that experts warned could push the economy into recession and sent stocks 20% lower in 2022.
United States United States Latest News, United States United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Stock market news today: Tech stocks lead as investors refocus on ratesTech rally leads US stocks higher as investors refocus on rates after bank fears recede why aren’t you covering the RESTRICT Act?
Source: BusinessInsider - 🏆 729. / 51 Read more »
Stock market just flashed sign that Silicon Valley Bank crisis is overThe stock market just flashed the first sign that investors think the Silicon Valley Bank crisis is over Inverse Cramer incoming Give it time Biden isn’t done
Source: BusinessInsider - 🏆 729. / 51 Read more »