Stocks continued to recover from near-oversold levels as traders assessed earnings growth prospects against a backdrop of rising interest rates.

The S&P 500 staged a back-to-back rally after nearly giving up all of its gains. Goldman Sachs rose on the strength of its results. Apple recovered after briefly falling victim to a report that it was cutting production of its iPhone 14 Plus. Netflix rose in late trading after subscriber growth exceeded expectations.

Positive company results, lower valuations, and policy reversals in the United Kingdom have all helped to boost risk sentiment. Stock and global growth sentiment among fund managers polled by Bank of America show complete capitulation, paving the way for equities to bottom in the first half of 2023.

Still, with inflationary pressures, economic risks, and hawkish central banks looming, investors are divided about how long the gains will last.