Posted 1/20/2024, 1:13:25 AM
Stocks Rebound to Record Highs After Inflation and Recession Fears Subside
- Wall Street returned to record highs, capping a 2-year round trip marked by high inflation and recession worries
- The S&P 500 rallied 1.2% to erase its losses since early 2022, when it dropped 25% as the Fed hiked rates to combat inflation
- Inflation has cooled since peaking in 2021, leading markets to bet the Fed will soon cut rates to boost the economy
- Upbeat consumer sentiment and inflation expectations suggest the economy is still growing despite rate hikes
- Big Tech stocks led Friday’s gains, with chipmakers rising on an upbeat forecast from Taiwan Semiconductor