The cooling inflation, historically tight labor market, China’s move to reopen its economy, and signs of easing energy market stress have all contributed significantly to the improvement in investors’ sentiment in recent weeks. The S&P 500 index’s 8.9% rise in 2023 shows optimism in the stock market.
Moreover, the Federal Open Market Committee (FOMC) raised the interest rate by 25 basis points, marking the central bank’s first explicit acknowledgment of slowing inflation. Federal Reserve Chair Jerome Powell said that his hopes for an economic soft landing, despite very aggressive interest rate rises, remain alive.
