Ending the longest weekly losing streak in more than 20 years, the US stock market sell-off is coming to an end?

Has the stock market sell-off over as U.S. stocks rallied toward the end of May?

U.S. stocks got off to a bad start this year, with the S&P 500 down 13 percent this year, the biggest drop since 1970, as the Federal Reserve implemented aggressive monetary tightening policies to fight inflation, sparking fears of a U.S. recession. Rising interest rates dented the appeal of tech and growth stocks, with the Nasdaq 100 tumbling 22%, its biggest drop on record.

The sell-off interrupted the bull market in U.S. stocks. Still, less hawkish rhetoric from Fed officials, resilient U.S. consumer spending and better-than-expected corporate earnings gave investors hope. That pushed the S&P 500 back 6.6% last week, snapping its longest weekly decline since 2001.

The Nasdaq 100 suffered its worst bear market since the global financial crisis. While the historic rout in tech stocks has eased, the Nasdaq 100 is still down 23% from its November high.

Investors also suffered their worst hit since 2008. In 2022, the S&P 500 will see a daily range of at least 1% on 89% of trading days, according to Strategas Securities.

Energy stocks bucked the trend, as oil prices soared amid the Russia-Ukraine conflict. That has made energy stocks the biggest winners among the major sectors of U.S. stocks, up 58% for the year.

So, is the “darkest moment” over for U.S. stocks? Analysts say volatility is likely to continue until stocks hit their final lows. But lower valuations have begun to lure buyers back.

The S&P 500 has historically rebounded for the rest of the year in each of the five previous worst starts, rising an average of 19.1% in the ensuing seven months, according to LPL Financial. It’s important to note, though, that stock market trading and investing has changed dramatically since the 1970s, let alone the 1930s.

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