In an exciting turn of events, Wall Street may be witnessing the dawn of a new bull market. Market participants are closely monitoring recent developments that indicate Wall Street’s potential bull market in the financial landscape.
The S&P 500, a key benchmark index, showed promising signs as it climbed 20% from its closing low on October 12. This significant milestone has led some experts to suggest that a new bull market could be on the horizon.
Defining a bull or bear market poses challenges, as there is no universally agreed-upon criteria or regulatory body that officially designates these market phases. Unlike the National Bureau of Economic Research (NBER), which authoritatively declares recessions, market trends are subject to interpretation.
During Thursday’s trading session, the S&P 500 recorded a 0.6% gain, primarily driven by the strength of technology stocks. Additionally, volatility reached record lows ahead of an eventful economic and policy calendar anticipated for the following week.
Meanwhile, the Nasdaq experienced a remarkable rise of 1%, marking a nearly 30% increase from its closing low in December last year.
While the 20% rise off a low is commonly accepted as a defining characteristic of a bull market, even this criterion is open to varying interpretations. Howard Silverblatt, senior index analyst at S&P Dow Jones Indices, explained that the origin of this threshold dates back to the early 1900s, specifically during the First World War.
Although the S&P 500 has surpassed the 20% benchmark, some analysts believe that a new bull market will only be confirmed when the index surpasses its previous high from January 2022. According to Silverblatt, until that milestone is reached, it can be viewed as a bull run within a bear market.
As Wall Street continues to navigate these fluctuations, market participants eagerly await further developments that will shed more light on the trajectory of this potential bull market.
Full article can be read at reuters.com.
