Market Selloff’s Sequel Is Moment of Truth for Summer Stock Enthusiasts

  • Hinges on what you thought the driver of the rally was: Hogan
  • Equity market became ‘victim of its own momentum’: Wilson

A trader works on the floor of the New York Stock Exchange.

Photographer: Michael Nagle/Bloomberg
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It’s easy to be an optimist when sailing is smooth. The real test comes when things get rough.

That’s where true-believer bulls find themselves as momentum reverses in equity markets, with pro-stock arguments based on everything from valuations to financial conditions suddenly in question as Federal Reserve hawkishness revives. Early returns aren’t great. The S&P 500 is down 5% in three days.