US stock market bulls take heart from surprise gains

Steady improvements in gauges of momentum and sentiment in recent weeks has seen optimism grow among many investors.

The S&P 500 rose over 6% in January, driven in part by hopes that the Fed will be able to contain surging inflation.

US stock market bulls are taking heart from a range of market signals pointing to an upbeat year for Wall Street, as shares sit on impressive gains despite deep worries over rate hikes by the US Federal Reserve. 

Such signals are not foolproof, as weak outlooks for corporate heavyweights such as Amazon and Microsoft, and a blowout US employment number last week, heightened expectations for further rate increases. The S&P 500 index nonetheless remains up 7.7% year-to-date, at the start of a new week.