The stock market indices rose on Wednesday, regaining a little of their lost ground. The S&P 500 surged 0.9%, while the Dow gained 0.6%. The tech-heavy Nasdaq Composite gained 1.5%. Investors hope that inflation is starting to peak and good value can be found at this level. However, the Nasdaq remains in a bear market, down 26.9% year-to-date.
Nasdaq’s correction this year can be attributed to the underperformance of tech stocks. Morgan Stanley (MS) believes that large-cap growth names’ underperformance despite impressive earnings indicates that these stocks are trading at reasonable valuations now. MS expects modest equity returns for 2022.
