The stock market has witnessed a rally, with the S&P 500 gaining modestly over the past month after October’s inflation report came in lower than expected. Moreover, signals of less aggressive price hikes by the Fed in the future have instilled a sense of optimism among investors. Veteran investment strategist Ed Yardeni expects the stock market to jump as much as 8% before year-end as the economy seems resilient.
Additionally, Goldman Sachs Group Inc. (GS) research shows that the U.S. economy will probably stick to a ‘soft landing’ next year. The bank believes there is just a 35% chance of a recession over the next year.
