U.S. shares struck new highs for the year on Friday and helped lift world stocks to a 13-month peak, as rising bets that the Federal Reserve will skip a rate hike next week overshadowed worries about U.S. markets being drained of cash.
Surging enthusiasm for technology giants building consumer products based on artificial intelligence catapulted the US benchmark S&P 500 into a technical bull market on Thursday. On Friday, the blue-chip bellwether index was up more than 20 per cent from its lows and is at its highest level since August, with the tech-heavy Nasdaq index chasing seven straight weeks of gains to soar 27.4 per cent year to date.
“As of today, the S&P 500 is back in a bull market,” said Arthur Hogan, chief market strategist at Briley Wealth, noting that the index finished Thursday with a 20% gain off its recent lows. “The one thing that could tip over the apple cart is an over-aggressive Fed.”
“It’s maybe the most hated bull market in the history of bull markets,” said Tim Holland, chief investment officer of investment platform Orion OCIO.
“Sentiment was terribly depressed going into year-end and still remains on the bearish side.”
And just remember how narrowly based this surge is though as hot money seeks a home in an uncertain world.
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