Wall Street Preps for Year-End Stock Rally as Volatility Plunges
- S&P 500 notches a second monthly gain, rises above 200-DMA
- Dow Jones Industrial Average climbs 20% from September low
In lockstep with powerful market trends that have endured for the past 70 years, Wall Street for once saw it coming: With the midterm elections firmly in the rear-view mirror, the S&P 500 Index has duly enjoyed a rally once again this month -- even as the gauge posted more days in the red than in the green.
As a growing number of traders make their peace with the Federal Reserve’s policy-tightening campaign, the equity benchmark has posted two consecutive monthly advances for the first time since the summer of 2021, rising 14% in that time. After relatively dovish comments from Fed Chair Jerome Powell on Wednesday, it climbed 3.1%, jumped over its 200-day moving average for the first time since April and closed at the highest since September.