Stock Rally That Nobody Saw Coming Is Refusing to Go Quietly
- Hedge funds selling into equity rebound in sign of disbelief
- Cash in favor as investors face uncertainty over rates, war
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Hedge funds distrust it, a clutch of strategists say it’s doomed, and the Federal Reserve probably wishes it would stop. But a fearsome stock market rally that has been giving prognosticators fits is refusing to go away.
A final-hour surge Friday salvaged a third straight up week for the S&P 500 -- barely -- extending a run for U.S. equities that at times has ranked among the strongest in the past decade. The benchmark gauge has retraced well over half its tumble since the start of the year, a shock to institutional traders who spent most of the last three months slashing risk.