A more dovish Fed has been a tailwind for risk trades and even after some late profit-taking yesterday, it doesn’t dull the shine from earlier in the week. European indices are maintaining a good mood today with the DAX and CAC 40 both having hit fresh record highs during the week and US indices are also at the highs for the year.
The S&P 500 is on course for a seventh straight week of gains, up 2.5% this week, and during that run, the index has gained by nearly 15%:
S&P 500 index weekly chart
It is now less than 2% away from a fresh record high with futures pointing to a 0.3% gain at the moment ahead of the open later.
Despite there being notable headwinds for the global economy and the inflation monster not quite defeated just yet, stocks are on their way to scale to new heights once more. If you ever need more evidence that the stock market is not the economy, this would be it.