For now, however tumultuous the backdrop, the rally in risk assets is powering on, fueled by conviction that the economy is expanding enough to avoid a recession while still warranting Federal Reserve easing. Corporate credit and commodities joined the weekly advance.
Add political turmoil to the long list of outside influences that are failing to thwart the 2024 bull market.
Investor resilience was on display again in a week in which high election drama couldn’t keep the S&P 500 from doing what it’s done in nine of the last 11 weeks: go up, this time in all sessions. Even markets that initially lurched on President Joe Biden’s debate travails, such as Treasuries, calmed appreciably as economic data bolstered the case for rate cuts.
