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NYSE: Wall Street looks beyond turmoil, expects recovery

US economic worries are growing, but the stock market is holding firm.

The US is likely barreling toward a recession that could be worse than any in the past few decades, with a housing market in a meltdown and consumers on the ropes. Has Wall Street lost its head?

Many analysts say the stock market is fulfilling its role as a forward-looking barometer and that investors are looking past the current economic turmoil to a recovery later this year or next year. Others say such an outlook may be too optimistic.

In the coming week, a key moment for Wall Street will be the policy meeting of the US Federal Reserve, widely expected to make a small rate cut but signal a possible pause to assess the impact of a series of cuts and other stimulus for the US economy.

In the week to Friday, the Dow Jones Industrial Average of 30 blue chips edged up 0.33 percent to 12,891.86 and the Standard & Poor’s 500 broad-market index added 0.54 percent to 1,397.84.

The technology-heavy NASDAQ composite climbed 0.83 percent to 2,422.93.

Bonds fell in the past week on a shift into equities. The yield on the 10-year Treasury bond rose to 3.866 percent from 3.743 percent a week earlier and that on the 30-year bond increased to 4.589 percent against 4.517 percent.
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