Wall Street achieved record highs, with the S&P 500 rallying 1.2% to 4,839.81, erasing the losses it faced since early 2022.

Amid high inflation fears, the expected recession didn’t materialize, and the Federal Reserve’s rate hikes didn’t lead to a market downturn.

Anticipation of potential rate cuts has become a major focus for investors, supported by indications from the Federal Reserve itself.

Encouraging data, such as a rise in consumer sentiment, fueled Wall Street’s optimism, contributing to the recent market rally.

Technology stocks, especially chip companies, played a significant role in the rally after positive forecasts from Taiwan Semiconductor Manufacturing Co.

While the S&P 500 hit a record, concerns persist that the market might be overly optimistic about the timing of rate cuts.

Investors should remain cautious, considering potential disappointments if inflation proves more persistent than expected.

The return to record highs highlights the historical trend of patient and diversified investors eventually recovering from market downturns.

Risks remain, with uncertainties about the timing of rate cuts and the possibility of a recession lingering in the market.

Wall Street achieved record highs #Technology