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Wall Street Week Ahead: US summer stock rally at risk as September looms

Chief among the reasons for the gloomy outlook is a belief that the Fed will continue hiking rates and keep them above neutral longer than markets had anticipated as recently as a week ago

All but five stocks in the S&P 500 tumbled, and the benchmark posted a more than 20% loss since its January peak, crossing into a bear market. (Photo: Bloomberg)

The strong rally since June, however, suggests the index will continue to rebound through December, Stovall said.

Reuters New York
The 10.7% rally in the S&P 500 from its June lows is stumbling as it runs into what has historically been the toughest month for the U.S. stock market, sparking nerves among some fund managers of a broad sell-off in September.
The S&P has been in a bear market since plummeting early this year as investors priced in the expectation of aggressive Federal Reserve interest rate hikes, but the index has rallied strongly since June, regaining half its losses for the year.
That rebound has been fueled by a combination of strong earnings from bellwether companies and signs that inflation

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First Published: Aug 28 2022 | 5:36 PM IST

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