From Dips to Dazzle: V-shaped Recovery on Shift in Sentiment
The market faced a sharp decline at the beginning of August, driven by the rewinding of Yen carry trade, exacerbated by fears that the U.S. economy was slipping into recession, after a higher-than-expected unemployment rate of 4.3%. Following the initial downturn, a series of encouraging economic indicators as well as The Fed Chairman's comments at Jackson Hole signaling a shift in focus towards a more accommodative monetary policy, led to a significant boost in market sentiment, buoying major indices closer to their all-time highs. The recovery was led by technology, previously been hit hard in the pullback.
