PRESS ROOM
EQUITIES: US stocks bounce back as sentiment improves
Friday 22nd July '22
A slight improvement in risk sentiment in US stocks can be attributed to a combination of three things: 1. Markets overreacted to the latest US inflation print expecting the Federal Reserve to raise rates by 1% in July. As expectations moderated to a 75basis points (bps) increase, markets breathed a sigh of relief. 2. Earnings so far for US companies do not paint a picture of recession. And 3. Many investors are still looking to buy at current, and relatively more attractive, valuations following the sell-off in the first six months of the year.