U.S. stocks bounced back strongly on Monday following Wall Street’s worst week since October.

Stocks fell sharply on Friday, after St. Louis Federal Reserve President James Bullard said he expects interest rates to be raised in late 2022, earlier than the Fed’s forecast. Futures initially fell late on Sunday before a turnaround, with investors seemingly still digesting the Fed’s signal last week.

In our call of the day, Morgan Stanley
MS,
+2.68%

said 2021 was beginning to resemble 2004, a year that may offer clues for investors as to what will happen in the months ahead.

After the U.S. recession ended in 2001, a “deep malaise” set in until 2003, when unemployment peaked and markets finally troughed, the bank’s chief cross-asset  strategist Andrew Sheets said in a note on Sunday.

He noted that the rally of 2003 was “classic early-cycle stuff,” with strong performance in small-caps,…

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