Stock Rally Erases Monday Slide With Bulls Betting on Growth
- In this economy, tightening isn’t bad for stocks, Gaffney says
- Paulsen notes foundation may be forming for another leg up
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With the Federal Reserve out of the way and the China Evergrande Group debacle seemingly contained for now, stock investors are piling back into risk assets.
The S&P 500 turned higher for the week, overcoming the worst single-day selloff since May, while the Dow Jones Industrial Average is on pace to halt a streak of weekly losses. The Fed’s signal that a slowdown in its bond-buying is imminent came with commentary that the recovery remains robust. That’s borne out in some recent data points, with Citigroup’s U.S. economic surprise index turning higher -- meaning activity readings are outpacing expectations once again.