Market Momentum Shifts as Fed Decision Looms
After a dismal streak, the S&P 500 is finally showing signs of life, with 262 of its stocks rising and the index itself up 0.3%. This marks a significant turnaround, as the majority of its stocks had closed lower for 12 consecutive sessions – a streak not seen since 2000.
A Glimmer of Hope
The Dow, which had fallen for nine straight sessions, was up nearly 200 points, or 0.5%, in early afternoon trading. Meanwhile, the Nasdaq Composite saw a modest 0.2% gain. While these gains are encouraging, investors remain cautious ahead of the Federal Reserve’s highly anticipated decision.
Historic Context
According to Dow Jones Market Data, which dates back to December 31, 1999, the S&P 500’s longest streak of negative breadth was previously a 10-day stretch in 2000. The current streak, while concerning, has not yet reached that level.
Caution Remains
Despite the welcome uptick, investors are bracing themselves for the Federal Reserve’s decision, which could have a significant impact on the market’s trajectory. With the Fed’s announcement looming large, it’s unclear whether this newfound momentum will be sustained or if the market will return to its recent slump.
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