S&P 500 Enters New Bull Market: ETFs to Play
Nasdaq The S&P 500 has entered a new bull market, and the indicators seem to support its continuity. From chances of easing interest rate hikes to increasing corporate earnings and a historical pattern favoring the bulls, the positive momentum appears set to stay.
Here, we explore the four key reasons driving the current bull run and identify the ETFs poised to outperform in this climate.
Will Fed Rate Hike Momentum Ease?
A recent surge in U.S. jobless claims indicates that the labor market may be cooling off, a situation that's proved a catalyst for tech stocks, which had been facing stiff headwinds from speculation about the Federal Reserve maintaining higher interest rates. This situation could potentially lead the Federal Reserve to reconsider its interest rate hiking momentum.
Currently, markets are pricing in a 65% chance that the Federal Reserve will pause its rate hikes in the next Federal Open Market Committee meeting. With the Fed setting the price and the rest of the market taking it, this easing of interest rate hikes could likely fuel further upward momentum in the S&P 500.
