Best weekly rally for US markets

Best weekly rally for US markets💯

US and Canadian stocks had a strong rally this week after July’s US inflation report showed signs of cooling, though still high at 8.5%, like the reading of June. S&P 500 and Nasdaq added 3.26% and 3.08%, and Canada’s S&P/TSX added 2.85% this week. S&P 500 recorded its fourth week of gains, the longest rally since November. US markets have regained half of what they have lost since January, and the benchmark is close to its 200-day moving average.

The earnings season is almost over, with reports not as gloomy as anticipated and mixed economic data. If the inflation is shown to have peaked, the Federal Reserve may decide to reduce the pace of the most aggressive tightening in decades. Still, US central bank’s officials are not showing any signs of dovishness. The next few weeks will determine whether the bear market is over or the recent rally is just a bear rally, as some call it. Based on Bank of America Corp, equity funds attracted 7.1% billion this week.

Elsewhere, commodity prices continue to go down, with oil prices of around 90 and US and Canadian dollars remaining strong against other major currencies. USD stands at 1.27 against CAD.