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Investor sentiments remained bullish over the week ended Feb. 7, with 49% voters of the American Association of Individual Investors, or AAII, Sentiment Survey feeling optimistic about where the market is headed in the coming 6 months.
Last week, almost the same percentage of voters had similarly said that the market will trend up over the next 6 months.
A total of 28.4% of the surveyors see no change in the market direction, compared to 26.4% last week. On the contrary, a bearish tone on the market movements reduced to 22.6% this week from 24.5%.
All major indices are currently trading closer to their 52-week highs. Dow Jones Industrial Average Index (DJI) is trading near $38,783.62, while S&P 500 Index (SP500) neared its historic high of 5,000 points mark for the first time ever.
Meanwhile, NASDAQ Composite Index (COMP.IND) touched $15,812.16 today, its peak in almost 1 year’s time.
The rise comes on the back of a strong economic data.
“The economy and labor market remain strong with wage growth outpacing inflation, which is keeping consumer spending robust,” Freddie Mac’s chief economist, Sam Khater, said.
Jobless claims fell more than expected for the week ended Feb. 3. The Business Council and Trustee of The Conference Board’s CEO confidence gauge showed that CEOs are feeling better about the economy, even though job cuts are expected.
Boston Federal Reserve President Susan Collins contended that the U.S. central bank should start cutting interest rates “later this year” as the threat of above-target inflation has receded.
The 10-year bond yield (US10Y) had risen to 4.16% on Thursday noon from its previous close of $4.11.