Specter of Next-Day Losses Haunts Stock Bulls’ Post-Fed Rally
- Risk/reward from current levels is ‘pretty poor’, says Samana
- Market move is ‘victory of hope over experience’: Rosenberg
Jerome Powell departs from a news conference following the FOMC meeting in Washington, D.C., on July 27.
Photographer: Ting Shen/BloombergThis article is for subscribers only.
Stocks surged for a third straight time after the Federal Reserve delivered a jumbo rate increase. It’s what happened after the last two rallies that’s denting hopes for further gains.
In May and June, big gains were followed by even bigger selloffs as investors parsed Chair Jerome Powell’s remarks and recalibrated expectations for the likely path of policy moves. Warnings that another downdraft is possible came swiftly from across Wall Street after the S&P 500 surged 2.6% and the Nasdaq 100 delivered its best jump since November 2020.