The summer stock rally could produce more pain
CNN
Investors are anxious, tired and gloomy as they digest the worst start to the year since 1970 and try to chart a path forward. But you wouldn't know it from watching major stock indexes.
What's happening: The S&P 500 rallied more than 9% in July, its best month since November 2020. The hope, among investors, was that the Federal Reserve could start to mellow out, reducing the risk that the central bank's aggressive interest rate hikes could tip America's economy into a recession this year or next.
Federal Reserve officials have been saying for months they need to see more convincing data demonstrating that inflation is on a sustainable path to 2% before they can feel comfortable cutting rates. Last month’s unexpectedly hot Consumer Price Index report is the exact opposite of that. That’s why Fed Chair Powell conveyed on Tuesday the central bank won’t be cutting interest rates any time soon.