By Lewis Krauskopf
NEW YORK (Reuters) – A rebound that has taken the U.S. stock market to record highs this week may have further to run, if history is any guide.
Fresh signs of a cooling economy calmed inflation worries in May, helping all three major U.S. stock indexes rise to records this week. The benchmark S&P 500, which fell over 4% in April, is now up 11% year-to-date.
Market strategists who track historical trends say stocks tend to build momentum when recovering from similar-sized pullbacks, often continuing to rally even after making up lost ground.
Should the current bounce conform to that pattern, more gains could be in store. Past rebounds in the S&P 500 from 5% pullbacks have been followed by a median gain of 17.4%, said Keith Lerner, co-chief investment officer at Truist Advisory Services. As of Friday, the index was up nearly 7% from its April lows.
“Once you find the low, the market typically has further to go than what we’ve seen so far,” said Lerner, who studied data…
2024-05-17 16:52:30
Source from finance.yahoo.com
