August has left investors elated after an impressive Wall Street rally. The S&P 500 and Nasdaq Composite indices rose 2.9% and 4%, respectively, in the month. The blue-chip Dow Jones Industrial Average has also gained 1.2% in the same period. In fact, the S&P 500 index witnessed its seventh consecutive month of gains. The S&P 500 Information Technology index has also returned 3.4% in the past month.
Notably, the Fed doesn’t look to hike interest rates in the near term. Also, Fed Chairman Jerome Powell seems to have prepared the market for tapering its $120 billion in monthly bond purchases this year. The second-quarter earnings season saw better-than-expected results, stimulating the rally in stock markets. According to a CNBC article, the S&P 500 is on track to witness the largest increase since fourth-quarter 2009 by recording an earnings growth rate of 95.4%.
The United States is witnessing a considerable rise