Federal Reserve Highlights Market Resilience Amid Stock Price Surge

According to BlockBeats, the Federal Reserve released the minutes from its July meeting, noting that the recent rise in stock prices and narrowing credit spreads suggest that the market perceives the overall U.S. economy as resilient. However, financial markets appear to be differentiating companies based on their earnings size and quality. The valuation of the S&P 500 Index remains above its long-term average, primarily due to optimistic expectations about the potential benefits large tech companies could gain from further applications of artificial intelligence (AI). In contrast, the valuation of small-cap indices, although having increased during the meeting interval, remains below historical averages.