On an official basis, the bear market ended on Oct. 12, 2022. Therefore, the midweek session where the S&P 500 closed down slightly more than half-a-percent presented an odd backdrop. True, the equities market features a constant ebb and flow. Nevertheless, Wednesday also marked the third consecutive trading session of losses. It then raises the question, is a sentiment pivot underway? And if so, is a recession on the horizon?
Earlier on, the latter question appeared preposterous. Most prominently, the May jobs report showed that the economy added 339,000 new employment opportunities, well above economists’ consensus forecast. In addition, the benchmark S&P 500 has been on a relative tear since the waning days of the prior month. However, all good things eventually come to an end.
