Stocks Are in a Bull Market. What Does That Mean?
Summary
The gains show that investors have overcome fears of rising interest rates and panic about a recession that had governed stock trading for much of the past two years. Low interest rates and high consumer spending, fueled by stimulus checks and the rollout of the coronavirus vaccines, helped bolster it. But just days later, the Federal Reserve released details of a meeting that suggested the central bank was worried about inflation and would start raising rates to slow the economy. Investors started to bet that the Fed was nearly done with its campaign, and once the central bank signaled that it was considering lowering rates in 2024, the drop reversed and stocks rallied past that old high. Higher share prices can encourage companies to expand, and for the 60 percent of Americans who own stocks, a bull market means they might feel slightly wealthier because their long-term savings are worth more.