Benchmark indices have been soaring lately, hitting fresh highs as the U.S. economy continues to recover at an impressive pace. And because analysts expect the Fed to maintain its dovish monetary policy stance for now, the stock markets are expected to remain bullish in the near term. Hence, we think the momentum gained by ABB Ltd (ABB), Best Buy (BBY), and SS&C Technologies (SSNC) amid the fast-paced economic recovery could continue. Let’s discuss these names.The disconnect between the stock markets and the real economy witnessed last year has been reversing this year. A fast-paced economic revival has been driving the stock markets, with major benchmark indices hitting their all-time highs. The S&P 500 index hit its 4,249.74 all-time high on June 10, driven by the U.S. House of Representatives’ $547 billion infrastructure stimulus package approval that day. The Dow Jones Industrial Average (DJIA) index crossed 30,000 for the first time in April and hit its 35,091.56 all-time high on May 10. Also, with benchmark Treasury yields currently declining, the tech-savvy Nasdaq Composite is rebounding gradually. The index has gained 7.3% over the past month, and 1.5% over the past five days.
While the markets are still volatile due to rising inflation concerns--consumer prices gained 5% year-over-year in May, their highest gain in nearly 13 years--the Fed believes the prevailing inflation rates to be temporary. Because price levels are expected to stabilize over the long run, the stock market is expected to remain bullish in the near term.
Thus, the prices of top momentum stocks ABB Ltd (ABB), Best Buy Co., Inc. (NYSE:BBY), and SS&C Technologies Holdings, Inc. (SSNC) are expected to continue ascending in the coming months.