John Authers, Columnist

This Equities Rally Is Running on Hope and a Story

The world-changing narrative around AI has hooked up with the Fed’s determination to provide liquidity, even during a rate-raising cycle.

May 19, 2023 at 4:11 AM UTC

By John Authers

John Authers is a senior editor for markets and Bloomberg Opinion columnist. A former chief markets commentator at the Financial Times, he is author of “The Fearful Rise of Markets.”

The Nasdaq Composite is up more than 20% for the year. — The Nasdaq Composite is up more than 20% for the year.
Photographer: Angus Mordant/Bloomberg

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Despite everything, risk is “on.” After another good session for US equities on Thursday, the S&P 500 is up 9.3% for the year, while the Nasdaq Composite is now in the black by more than 20%. By the close, the S&P had reached its highest since August, and looks as though it might now be breaking out above the range in which it’s been trading ever since, as illustrated by Bespoke Investment below. What’s caused this?