ALBAWABA – United States (US) stock markets have reportedly regained more than a year’s worth of losses induced by the 10 consecutive interest rate hikes, enacted by the Federal Reserve Board (Fed) since March 2022.
The S&P 500 index has seen five straight weeks of gains, according to Reuters, and is now higher than it was on March 16, 2022.
Almost every key financial market metric is nearly restored to its pre-rate hike levels, including the US dollar and treasury bond volatility to equity-market positioning, the news agency explained.
“The Fed will probably be a little less important over the next six to 12 months than they have been,” Jonathan Mackay, head of platform distribution at Schroders, told Reuters.
“Other global drivers and fundamental drivers will take more of a bigger role as the Fed potentially starts their pause period,” he said.
The macro contribution on equity markets has fallen to 71 percent from 83 percent since March — the biggest three-month drop since 2009, according to a Citigroup Inc. model.
In the last three weeks, global US equity inflows into Wall Street amounted to $38 billion, the strongest momentum of flows to the asset class since October, according to Bank of America, citing EPFR Global.