On Friday, the S&P 500 finished its fourth straight week of gains, the longest streak since November.
Key details
Large market caps like Apple and Tesla drove the Nasdaq 100 beyond its technical bull-market threshold, leading a surge of more than 20% from the June lows. The S&P 500 is up 17% from its June low.
And investor money is pouring in. Global equity funds lured $7.1 billion in the week through August 10, Bank of America strategist Michael Hartnett wrote. Bond funds saw inflows of $11.7 billion, while $4.3 billion was pulled out of cash, reports Bloomberg.
“The music hasn’t stopped,” says State Street Global Advisors’ head of research Matt Bartolini. “The labor market continues to be positive, earnings growth continues to be positive. So largely, if there is a recession, it’s going to be relatively shallow.”
Why it’s news
The stock market had the worse performance in years from January through June, so a rebound is welcomed by investors. Data shows consumers are regaining confidence. The University of Michigan’s preliminary sentiment index rose to 55.1 from 51.5 in July. Consumers expect prices will climb at an annual rate of 3% over the next five to 10 years, from 2.9% in July. They see costs rising 5% over the next year, the lowest since February, compared to last month’s 5.2%, reports Bloomberg.
“In spite of this strength in the labor market and some signs of improvement in inflation, consumer sentiment remains very low by historical standards,” Joanne Hsu, director of the survey, said in a statement. “In the current context, even strong labor markets have been raised as negative news for business conditions, as consumers recognize the challenges businesses may face with hiring.”
