As we approach the end of May, the previous weekThe US stock market has stopped its weekly continuous depreciation. Investors have speculated that the worst market downturn has come out of the year.
Traders break out of decline for 7 consecutive weeks-almost all quotes rise sharply
There is no doubt that the market has been so troublesome this year. The S & P 500 Index has fallen about 13% year-to-date, the sharpest drop since 1970. Behind this is concern about recession as US monetary authorities aiming to curb inflation move aggressively to tighten. Rising interest rates have made technology stocks and growth stocks less attractive, with the Nasdaq 100 index declining at about 22%, the highest ever.
However, it weakened the hawkishness of multiple U.S. financial officials.Remarks and solidPrivate consumption and bright corporate performance have given investors hope, and the S & P 500 class on the 27th was 2.5% higher than the previous day.
The sale of tech stocks is also settling down somewhat. However, the rate of decline of the Nasdaq 100 index from the November highs of last year reached nearly 30% at one point, the sharpest decline since the time of the global financial crisis. After rising on the 27th, it shrank to 23%.
Investors have also been plagued by high volatility. According to Strategus Securities, the S & P 500 has 89% of all trading days so far this year with a daily volatility of more than 1%.
Buckle Up
S&P 500 is off to its wildest start to a year since 2008
Source: Strategas Securities, LLC
Energy-related stocks are against this trend. The background is the rise in crude oil prices spurred by Russia’s invasion of Ukraine. Energy stocks have overwhelmed other sectors with a year-to-date growth rate of 58%.
Energized
S&P 500 energy stocks have surged ahead of other sectors in 2022
Source: Bloomberg
Analysts say there may be more “head fake” before stocks bottom out. However, cheap valuations are beginning to bring back buyers.
Inflow of funds into stock funds, the largest in the last 10 weeks-buying in a squeeze due to market decline
According to LPL Financial, the S & P 500 species have reversed by the end of the five years, when they had the worst performance in the first 100 business days of the year, and have risen by an average of 19.1% over the next seven months. One caveat is that stock market trading and investment has changed significantly since the 1970s.
Snapback?
S&P 500 Index returns from 100th trading day until end of year
Source: LPL Research
news-rsf-original-reference paywall">Original title:
news-rsf-original-reference paywall">Wild Five Months Leaves Wall Street Split on When Selloff Ends（抜粋）
