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U.S. stocks rebounded on Aug 8, 2024, after weekly initial jobless claims fell more than the forecast in a positive update on the health of the U.S. labor market. This has alleviated recessionary fears (that was caused by downbeat jobs data released a few days back) and boosted Wall Street stocks.
The S&P 500 advanced 2.3%, while the tech-heavy Nasdaq jumped nearly 2.9%. The Dow Jones Industrial Average was up almost 1.8% on Aug 8, 2024. Thursday marked the S&P 500's largest one-day gain since November 2022.
Most U.S. CEOs do not expect a recession in the coming year, as quoted on Yahoo Finance. Recession talks have picked up over the past week as Wall Street reacted to signs of cooling in the labor market. Goldman Sachs and JPMorgan's global economics have boosted the odds of a recession.
Fundamentals Look Strong
A survey of 130 CEOs conducted from Jul 15 to Jul 29 revealed that 70% of them do not expect a recession in the next 12 months, a huge change from this time last year when 80% of respondents said they saw a "brief and shallow U.S. recession" in the next 12 to 18 months, the Yahoo Finance article quoted.
S&P 500 earnings are likely to record an increase of more than 11% in the second quarter, marking the highest year-over-year earnings growth rate reported by the index since Q4 of 2021, per the Yahoo Finance article. That is why many analysts view the latest correction as a healthy one. This is especially true given that the estimates for the upcoming years are too decent for the S&P 500.
DataTrek co-founder Nicholas Colas listed corporate earnings as the reason why he's still bullish on the market despite the recent volatility, as quoted on Yahoo Finance. If these were not enough, the Fed is likely to cut rates in September due to cooling inflation. If this happens, Wall Street would receive another boost.
Against this backdrop, investors can play the below-mentioned S&P 500 ETFs as these are more diversified in nature than the tech-heavy Nasdaq-100. Many are worried about tech stocks’ overvaluation while some apprehend a delayed return-on-investments on their AI initiatives.
S&P 500 ETFs to Buy
SPDR S&P 500 ETF Trust (SPY - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) and SPDR Portfolio S&P 500 ETF (SPLG - Free Report) are some of the few ETFs that can be tapped in the current situation. These funds can be bought on the recent dip.
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Can Wall Street ETFs Sustain the Latest Rebound?
U.S. stocks rebounded on Aug 8, 2024, after weekly initial jobless claims fell more than the forecast in a positive update on the health of the U.S. labor market. This has alleviated recessionary fears (that was caused by downbeat jobs data released a few days back) and boosted Wall Street stocks.
The S&P 500 advanced 2.3%, while the tech-heavy Nasdaq jumped nearly 2.9%. The Dow Jones Industrial Average was up almost 1.8% on Aug 8, 2024. Thursday marked the S&P 500's largest one-day gain since November 2022.
Most U.S. CEOs do not expect a recession in the coming year, as quoted on Yahoo Finance. Recession talks have picked up over the past week as Wall Street reacted to signs of cooling in the labor market. Goldman Sachs and JPMorgan's global economics have boosted the odds of a recession.
Fundamentals Look Strong
A survey of 130 CEOs conducted from Jul 15 to Jul 29 revealed that 70% of them do not expect a recession in the next 12 months, a huge change from this time last year when 80% of respondents said they saw a "brief and shallow U.S. recession" in the next 12 to 18 months, the Yahoo Finance article quoted.
S&P 500 earnings are likely to record an increase of more than 11% in the second quarter, marking the highest year-over-year earnings growth rate reported by the index since Q4 of 2021, per the Yahoo Finance article. That is why many analysts view the latest correction as a healthy one. This is especially true given that the estimates for the upcoming years are too decent for the S&P 500.
DataTrek co-founder Nicholas Colas listed corporate earnings as the reason why he's still bullish on the market despite the recent volatility, as quoted on Yahoo Finance. If these were not enough, the Fed is likely to cut rates in September due to cooling inflation. If this happens, Wall Street would receive another boost.
Against this backdrop, investors can play the below-mentioned S&P 500 ETFs as these are more diversified in nature than the tech-heavy Nasdaq-100. Many are worried about tech stocks’ overvaluation while some apprehend a delayed return-on-investments on their AI initiatives.
S&P 500 ETFs to Buy
SPDR S&P 500 ETF Trust (SPY - Free Report) , iShares Core S&P 500 ETF (IVV - Free Report) , Vanguard S&P 500 ETF (VOO - Free Report) and SPDR Portfolio S&P 500 ETF (SPLG - Free Report) are some of the few ETFs that can be tapped in the current situation. These funds can be bought on the recent dip.