U.S. stocks are climbing as hopes for an economic soft landing ease recession fears after a sharp sell-off. The S&P 500 has rebounded over 6% since August 5, with the Cboe Volatility Index also calming down. This recovery is driven by positive reports on retail sales, inflation, and producer prices, which have reassured investors.
Big winners like Nvidia have seen strong rebounds, and traders are scaling back expectations for significant Federal Reserve rate cuts in September. The Fed’s plans could become clearer when Chair Jerome Powell speaks next week.
Despite the recent optimism, September remains a historically volatile month. Investors will closely watch Nvidia’s earnings and the next employment report to gauge the market’s direction.
The S&P 500 is up over 16% this year, nearing its all-time high, with analysts optimistic about continued growth.