Shares of banks and other financial institutions rose on hopes of a return to financial market stability.
The broad S&P 500 rose in July for the largest monthly gain in almost two years.
“The biggest question is, ‘Is this it?'” said Quincy Krosby, chief global strategist at Brokerage LPL Financial.
“Does this indicate a way out of the bear market? And sadly, the answer most likely isn’t…we’ll wait and see if inflation comes down significantly.” Without data to “change trajectory,” the stock market is likely to remain in volatile bear-market mode, Ms Krosby said.
The two-year Treasury yield rose after the largest rise in the consumer spending index, the Fed’s preferred measure of inflation, since 1982.
Write to Rob Curran at [email protected]
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