Equities
A Second-Half Stock-Market Rally Is Still in Play Despite Rout
- Fed pause seen in July, setting stage for potential gains
- Markets will begin discounting Fed peak: Sanctuary’s Bartels
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Stock-market believers are looking past the roughest stretch in months for US equities and clinging to bets on a rally in the back half of the year once the Federal Reserve stops hiking interest rates.
The S&P 500 Index is coming off its worst week since Dec. 9, as hotter-than-forecast inflation data boosted speculation that the Fed will lift borrowing costs several more times, potentially pausing in July. That’s a steeper path of policy tightening than investors were bracing for just a few weeks ago.