Why stock prices are rising and what experts say comes next
Stocks have rebounded even as recession worries loom. High inflation, interest rate hikes and recession worries pummeled stocks last year. The market has rebounded in 2023, though, even as each of those problems continues to vex the economy. Compounding those concerns, the banking sector underwent a crisis last month and a debt ceiling dispute in Congress risks financial distress. Still, the tech-heavy Nasdaq has climbed more than 15% this year, while the S &P 500 has jumped more than 7%. The Dow has ticked up about 2% since the outset of the year. The gains in recent months owe in part to the poor performance last year, since investors already responded to the grim economic conditions with a sell-off, stock analysts told ABC News. Investors flocked back to the market as inflation eased and rate hikes slowed, even if those market headwinds persist and the threat of a recession looms, they said. MORE: Elon Musk slams AI 'bias' and calls for 'TruthGPT.' Experts que...