Selloff halted as stocks rebound

Chris Beauchamp IG

Yet another equity selloff has been stopped in its tracks, says Chris Beauchamp, Chief Market Analyst at investing and trading platform IG.

Stocks bounce back after brief wave of selling

Traders who thought this unstoppable market was about to get its just desserts have been bitterly disappointed, as stock markets rebound from the selling that seemed to have such a firm grip just a few hours ago. The selloff in Japan and South Korea seemed to promise a similar move in Europe and the US, but once more the wall of buying has come in to take advantage of this latest dip.

Crash calls premature, for now

As a reminder, stocks don’t undergo crashes when everyone is expecting them. This rally has been doubted for months, and positioning continues to be light compared to the peak in late 2021. The ADP report was better than expected, and showed a recovery from last month, but it was still enough to satisfy the narrative that the jobs market remains weak and needs more support from a rate-cutting Fed. Once more, the bears find themselves shut out of the party.

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Chris Beauchamp

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