On Monday, U.S. stocks experienced gains following a streak of seven consecutive weeks of growth for the major indexes. The Dow Jones Industrial Average saw a 0.1% increase, equivalent to a 31-point gain. The S&P 500 climbed by 0.3%, while the Nasdaq Composite advanced by 0.1%.
This winning streak for the S&P 500 represents its longest stretch of weekly gains since 2017. For the month, the broad market index has risen by 3.5%, with the Dow and Nasdaq following closely at 3.9% and 4.3% higher, respectively. Notably, the Dow achieved a new intraday record on Friday, and the Nasdaq 100 reached a new closing high.
The positive shift in investor sentiment occurred last week after the Federal Reserve signaled the expectation of three short-term interest rate cuts in 2024 due to a decline in inflation.
In a note released on Friday, HSBC chief multi-asset strategist Max Kettner expressed optimism, stating that the combination of slowing inflation, low growth expectations, and a sustained growth momentum provides a favorable backdrop for the market. He described it as an ideal scenario, commonly referred to as the “Goldilocks” state.
Source (CNBC)
