The Wall Street bull run completed 10 years on Mar 9. Historically this is the longest bull run of the U.S. stock markets. During this period, the Dow has gained nearly 300%, the S&P 500 has jumped more than 400% and the Nasdaq Composite has surged nearly 500%.
As a result of these enormous gains, several industry researchers have cautioned that the bull market is now too old with little room to run. A closer look at the U.S. economy has a different story to tell, with enough reasons for further rally.
Wall Street Rebounds in 2019
After a disappointing 2018, in which all the three major stock indexes closed in the red owing to severe volatility, Wall Street has made a spectacular comeback this year. The three Key indexes gained impressively in the first two months marking the best start by Wall Street in three decades. Year to date, the Dow, S&P 500 and Nasdaq Composite are up 9.1%, 9.4% and 11.7%, respectively.
Fed Adopts Dovish Stance
On Feb 27, in his testimony before the House Committee, Fed Chair Jerome Powell said that the central bank will not downsize its $4 trillion balance sheet this year. On Jan 30, the Federal Reserve decided to keep the federal funds target rate unchanged in the range of 2.25 – 2.50%. Per Powell, the central bank will maintain its dovish monetary stance at least for the time being. Notably, the Fed’s aggressive monetary stance in 2018 was largely held responsible by industry watchers for the stock market mayhem in the fourth quarter.
Positive Development on Trade War Front
The 11-month long trade dispute between the United States and China is heading toward a likely resolution. On Feb 24, President Donald Trump tweeted that the United States is planning to delay tariffs on additional Chinese goods as trade-related