U.S. stocks experienced a slight rebound on Thursday, with all major indexes rising. However, despite this upward movement, the indexes are still on track for a losing month. In Europe, the Stoxx 600 ended a five-session losing streak and rose from a six-month low, gaining 0.36%. Germany’s DAX index also saw a rise of 0.7%. Additionally, Germany’s inflation rate for September increased by 4.3% year over year, the lowest since February 2022.
CNBC’s Delivering Alpha conference took place recently, with notable figures like Bill Ackman, Rick Rieder, and Katie Koch sharing their insights. Ackman predicts that the 10-year U.S. Treasury yield could reach 5%. Rieder stated that the Federal Reserve will implement rate hikes, although he disagrees with the decision. Koch believes that a recession is on the horizon for the U.S. economy.
In other news, the European Union’s investigation into subsidies awarded to Chinese electric vehicle makers does not solely cover Chinese brands. Tesla and BMW are also under scrutiny. Elon Musk’s SpaceX secured its first Pentagon contract for Starshield, a military version of the company’s Starlink satellite internet system. Finally, the American Association of Individual Investors’ survey revealed that overall bearishness among retail investors climbed to 40.9%, the highest since mid-May.
While the slight reprieve in yields and oil prices gave stocks a boost, the long-term outlook remains uncertain. The American Association of Individual Investors’ survey and the pessimistic views expressed at CNBC’s Delivering Alpha conference highlight concerns about an impending recession and further rate hikes by the Federal Reserve. However, if the personal consumption expenditures price index demonstrates that inflation is under control, it could provide some relief for stocks. Overall, the prevailing sentiment is that things may worsen before they improve.