Wall Street experienced a strong rebound in the first half of 2023, recovering from the disappointments of the previous year. The S&P 500 Index surged by 15.9% during this period, marking its best first half since 2019.
In particular, soft inflation data for June (both consumer price index and producer price index) have strengthened market participants’ confidence that the Fed’s current rate hiking cycle is approaching its end. This could mean a brightening outlook for the stock market.
Investors who want to take advantage of the bullish equity setup should focus on good investment opportunities. One of the ways such potential plays could be identified is to look for signs of relative price strength.
This post originally appeared on 24/7 Wall Street.