The newest AAII sentiment survey confirmed that investor optimism concerning the short-term outlook for shares elevated this week, whereas bearish sentiment declined.
Based on the AAII Sentiment Survey, a complete of 42.5% of respondents expressed optimism, in contrast with 40.5%, Every week in the past, 28.9% of respondents felt pessimistic concerning the week ending August 14, in contrast with 37.5% final week.
A bigger-than-expected decline in weekly jobless claims was excellent news for buyers, serving to U.S. shares rebound and easing fears of a recession. Decrease-than-expected July wholesale costs additionally fueled optimism that upcoming shopper worth inflation knowledge will assist the Federal Reserve’s rate of interest cuts this yr.
“The bull/bear unfold (bullish sentiment minus bearish sentiment) elevated by 10.6 proportion factors to 13.7%. For the 14th time in 15 weeks, the bull/bear unfold was above the historic common of 6.5%.
Impartial sentiment additionally modified considerably this week, with 28.6% of buyers surveyed by AAII seeing no change in market course, in contrast with 22% every week in the past.
Bullish sentiment this week is above the historic common of 37.5%.
The survey, carried out by the American Affiliation of Particular person Buyers (AAII) since 1987, asks respondents how they see the market heading over the following six months.
The S&P 500 Index (SP500) rose almost 4% over the previous week, whereas the Dow Jones Industrial Common (DJI) rose almost 3%. The Nasdaq Index (COMP:IND) and the Nasdaq 100 Index (NDX) rose almost 6%.
