Institution: Sustained U.S. Stock Rally Unlikely Without Monetary Policy Support

BlockBeats News, April 17: Goldman Sachs' Head of Asset Allocation Research, Muli-Grissman, stated that the recent rise in the U.S. stock market would need the Fed to restart rate cuts to sustain momentum. He described the recent stock market rebound as a "rapid and vigorous recovery phase," partly driven by technical factors, including hedge funds that had previously sold stocks to reduce risk, now being forced to rebuild their positions.

Despite the S&P 500 poised to rise more than 3% for three consecutive weeks, he questioned the sustainability of the uptrend without monetary policy support. He pointed out that while the stock market is rising, oil prices are soaring, and the credit market is lagging. The stock market's outstanding performance is partly due to the high exposure to tech stocks. (FXStreet)