Lates News

Goldman Sachs' director of asset allocation research, Mueller-Grissman, stated that the recent rise in U.S. stocks needs the Federal Reserve to restart rate cuts in order to maintain momentum. He described the recent stock market rebound as a "rapid and violent recovery phase" driven in part by technical factors, including hedge funds that had previously sold off stocks to lower risk now being forced to rebuild their positions. Despite the S&P 500 potentially rising more than 3% for three consecutive weeks, he questioned whether the uptrend is sustainable without monetary policy support. He noted that while the stock market is rising, oil prices are high and the credit market is lagging. The outstanding performance of the stock market is partly due to the high exposure to technology stocks.