Your Money
The stock market has a habit of overreacting...in both directions, and recently it has been to the downside. There was a slew of headlines last week:
- Fed hikes interest rates by 0.75 percentage points for the second consecutive time to fight inflation
- GDP fell 0.9% in the second quarter, the second straight decline, and a strong recession signal
- Widely watched yield curve at most inverted in decades after Fed hike
- Microsoft misses estimates but stock up 5% on rosy guidance
While most of it wasn't good news for the stock market, except perhaps positive corporate outlooks, it wasn't as bad as the market had feared. The market rallied to close July up the most in a month since November 2020.
Stocks Finish Higher; S&P 500 Posts Best Month Since 2020
by Eric Wallerstein
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