The stock market rebounded for a second day in a row on Thursday, on track to snap a seven-week losing streak, as a slew of strong quarterly earnings reports boosted investor sentiment.
After strong earnings results, markets are set to rebound.
The S&P 500 gained 2% and the Nasdaq gained 2.5% as investors continued to assess the minutes from the Federal Reserve's latest policy meeting.
Despite seven straight weeks of losses, the S&P 500 is on track to post a strong rebound this week: The index is up more than 3%.
The doom and gloom about the U.S. consumer may have been overblown, according to Quincy.
Retail stocks, which were initially hard-hit during earnings season after profit warning from major companies like Walmart and Target, continued to rebound on Thursday, with strong showings from the likes of Macy's and Williams Sonoma, shares of which rose over 10% each.
Dollar Tree and Dollar General jumped 20% and 14%, respectively, after similarly solid quarterly results, which helped boost sentiment and reverse some of the steep selloffs in the retail sector last week.
Solid earnings results in recent days, especially from retailers, have helped soothe some of the deafening talk of the recession.
Mark Hackett, Nationwide chief of investment research, says that markets are volatile and that close attention is paid to the fundamentals, including consumer spending and corporate earnings.
The latest Fed minutes show that central bank officials agree on the need for tighter monetary policy, with most in favor of raising interest rates by a small amount at the upcoming policy meetings in June and July. The stock market has gone through a relentless selloff this year as investors worry about rising inflation and a possible recession. The S&P 500 is down over 15% in the year 2022, while the other two are down over 10%.
It is the worst start to a year since 1970 for the S&P 500 and one of the worst starts ever.
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Retail stocks rebound, but the shift in consumer spending may continue.
The central bank will raise rates aggressively.
The stock market has been selling off as the tech shares have fallen.
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