A new wave of selling in risk assets has swept the world, wiping $11 trillion off global stock markets since the end of March. In the context of high inflation and aggressive interest rate hikes by the Federal Reserve, the pessimism in the market has not dissipated.

Even though U.S. stocks recorded sharp gains on Friday, the three major indexes were still down more than 2% for the week. Among them, the Nasdaq and the S&P have fallen for six consecutive weeks, and the Dow has recorded seven consecutive weekly losses for the first time since 2001.

Entering 2022, market volatility caught many investors off guard. Can U.S. stocks continue their rally? What to focus on next? It has inevitably become a problem that investors need to face together.

Is the U.S. stock bull market ending or continuing? Wall Street is buzzing

The bull market in U.S. stocks that began in 2013 is entering its 10th year, and the upward trend could continue into 2027, according to Bank of America technical strategist Stephen Suttmeier.

The strategist said that the bull market that started in 1980 lasted until 2000 (20 years), and the bull market that started in 1950 lasted until 1966 (16 years). On the basis of past bull markets, this round started in 2013. is expected to continue. The 2020 pullback marks the “half time” of the current bull market and suggests that this uptrend can continue into 2027.

Peter Oppenheimer, chief global equity strategist at Goldman Sachs Group Inc., said investors had already priced in a lot of negative sentiment, including worries about inflation and growth, central bank policy tightening and the conflict between Russia and Ukraine, suggesting that the post-slump created buying opportunities for stocks.

And Wall Street’s most outspoken bear, Morgan Stanley’s chief U.S. stock strategist, Michael Wilson, said that the stock market crash is not over yet .

Greg Swenson, founding partner at London-based investment bank Brigg Macadam, warned that this could just be a rebound in bargain-hunting, arguing that the U.S. stock market will fall further in the future, and giant companies will not be spared.

What to focus on next?

Full of highlights this week! Investors need to pay attention to U.S. retail sales data and retail stock earnings reports, as well as speeches from several Fed officials including Fed Chairman Powell for more clues on the path of future rate hikes.

The main highlights of the US stock market this week are as follows:

There are views that as investors focus on retail sales data and corporate earnings this week, the three major U.S. stock indexes are expected to recover from the sell-off since the end of March.

The market is closely watching U.S. retail sales data, which is known as “horror data”. Analysts expect that retail sales will grow steadily in April thanks to stable auto sales. Although inflation is high, the growth rate is expected to rise from 0.7% in March. 0.8%.

A number of Fed officials will also speak one after another this week. Among them, Williams, Mester and Bullard, who have voting rights this year, have received high attention. Powell will also be interviewed by the media on Wednesday. There is a view that, given that even traditional doves like Powell have begun to “falcon”, the three officials are likely to be more aggressive than him.

In addition to economic data, the U.S. stock market will usher in the earnings reports of retail giants such as Walmart, Home Depot, and Target. Generally speaking, hypermarkets at the end of the commodity supply chain may have a more personal experience of rising inflation. Investors may be able to get a glimpse of prices from their first quarterly report-related data.

Investors will need to keep a close eye on retail companies’ guidance for the second half of the year, given rising inflation, rising wages and fuel costs and continued supply chain disruptions.

Can U.S. stocks continue to rebound?

In the face of volatile market conditions,

What’s your current strategy?

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