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Revival of Bear Market’s Laggards Shows Perils of July Rebound

  • Easing of financial conditions has supported risky assets: 22V
  • Meme stocks, crypto, Cathie Wood’s ARKK all rallied last month


Photographer: Peter Juelich/Bloomberg

Last month, an index of meme stocks rallied 12% and Cathie Wood’s flagship exchange-traded fund added 13%. Even cryptocurrencies recovered in July, with Bitcoin posting its best month since October.

In other words, the most speculative corners of the market got a lift as traders started to dial back their bets on the Federal Reserve’s policy tightening path amid slower economic growth. In July, the S&P 500 notched its best month since November 2020. But some market watchers warn that such gains can’t be sustained.