By the good performance of some large enterprises in EuropeCrashtwinsanityjavaBoostCrashtwinsanityjavaMarket confidence rebounded on Wednesday.
At 8:14 New York time, S & P 500 index futures rose 0. 5%.Crashtwinsanityjava.3%, NASDAQ 100 index and Dow futures rose 0%Crashtwinsanityjava.2%. Stocks may be expected to rebound after the S & P 500 fell for a third day on Tuesday and closed near a two-month low. U. S. bond yields fell from the year's high, ending a five-month rally after a dollar measure hit a five-month high.
As the Fed cut its expectations for interest rate cuts, investors' focus turned to corporate earnings as the next potential catalyst for the stock market to rise. Leonardo Pellandini, equity strategist at Julius Baer Bank, said that share prices of companies related to the business cycle are bound to benefit as the economy rebounds.
"since the new economic cycle is expected to start in the second half of this year, we actually recommend using this opportunity to gradually increase exposure to cyclical stocks," he said.
Barclays strategists also recommend buying cheaper assets as the market goes down, and an economic recovery is expected to boost earnings.