The Dow Jones index continued its recovery during November and for the second month in a row, and in a rushing manner that is considered the largest compared to several previous years, and it was able to compensate for the losses of the previous 6 months as a result of its rise by about 17% until the moment of preparing this report, However, the Standard & Poor's and Nasdaq indices increased more slowly by 10% and 5%, respectively did not give a clear confirmation of the end of the bear market, especially since the Fed has not yet determined when the peak interest rates will be.
The stock markets previously suffered from large fluctuations in favor of the downward trend due to fears of recession, high-interest rates, and high inflation prices to levels that harm the economy and the labor market which are factors that the economy is still suffering from and therefore the justification for the recent recovery of stock markets is only because of the moderation of inflation in October and its rise at the slowest pace since the previous January and less than market estimates recording 7.7%.
However, the Fed showed no signs of rate hikes stopping anytime soon
The Conference Board Leading Economic Index declined by 3.2% during the period between April and October 2022, which are indication that the economy is closer to recession than ever before, and therefore analysts believe that the stock markets still need more reassurances to confirm their ability to continue the positive performance. Perhaps the moderation of inflation during October will not be a sufficient justification for continuing its rise.
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