Understanding the S&P 500’s significant surge
The S&P 500, a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States, has increased significantly by 25% over the past five months. This surge can be attributed to the monetary policy decisions made by the Federal Reserve, the country’s central banking system. The Federal Reserve, or the Fed, as it is commonly known, has been playing what can be metaphorically referred to as ‘party music’ for the financial markets, creating an environment conducive to growth and prosperity. The role of the Federal ReserveThe Federal Reserve...