Global stock markets remained strong at Monday's open yesterday, maintaining momentum after last week's best weekly performance of the year.
This situation is a follow-up to the recovery from the massive fall of the market in the previous week, especially in the shares of the world's giant companies.
With the addition of $3 trillion in market trade, the major indexes showed positive performance with the S&P 500 and Nasdaq posting gains of 1% and 2% respectively to continue their 8-day streak of gains.
The market recovery was driven by previous risk sentiments that faded again with the expectation that the United States (US) economy would be able to avoid the disaster of recession.
Investors remain optimistic about potential interest rate cuts to be implemented by the Federal Reserve (Fed) at its September meeting.
The latest indication will be observed in Fed chairman Jerome Powell's speech at the Jackson Hole symposium that will take place this week.
Market analysts expect Powell to announce the implementation of a rate cut, but is unlikely to specify the amount of the rate cut.
The high percentage of the majority of the market right now is a cut of 25 basis points by the Fed.
Analysts from Deutsche Bank have advised that although the market has now calmed down, the risk of the massive sell-off of shares in the past two weeks has not yet completely disappeared.
Investors should remain cautious for their respective trades while waiting for the latest guidance from Fed Powell.
