Posted 1/19/2024, 9:15:00 PM
Wall Street Rebounds to Record Highs as Inflation Cools and Outlook Improves
- Wall Street returned to record highs, erasing a 2-year slump caused by high inflation and interest rate worries
- The S&P 500 rallied 1.2% to erase its losses since the start of 2022, after dropping as much as 25% due to the Fed rapidly hiking rates
- Inflation has been cooling from peak levels, leading to the key question of when the Fed will cut rates, which can act like "steroids" for markets
- Consumer sentiment recently surged to its highest since July 2021, encouraging for the economy, but some say markets are too optimistic about imminent Fed rate cuts
- Tech stocks drove part of the rally, with semiconductor companies rising after better-than-expected guidance from Taiwan Semiconductor