Stocks began the week with significant gains after suffering their worst September in two decades as treasury yields paused their seemingly endless rise, with weak US manufacturing data assuaging fears that the Federal Reserve will tighten monetary policy.
As a result of the recent selling, approximately 95% of the S&P 500's shares flashed green, with the index having its best day since July. Aside from being technically oversold, extreme pessimism and low fund positioning fueled a rebound following its third-worst performance in the first nine months of a year since 1931.
In a world where bad news is good news In terms of Fed policy, a drop in the Institute of Supply Management's gauge of factory activity indicated that the economy may be faltering, reducing the urgency for more aggressive rate hikes. President of the Federal Reserve Bank of New York, John Williams, stated that the central bank still has work to do to reduce inflation, warning that the process will take time.
