Stock Market Rally May Not Last for Long

Strategists have warned that the stock market faces risks in the second half of 2023, potentially leading to lackluster performance. Threats to the economy, such as slowing growth and persistent inflation, could push interest rates higher and prolong the tightening campaign by the Federal Reserve. Other experts have also expressed pessimism about the stock market's future. Despite these warnings, stocks have rallied in the first half of 2023, with the S&P 500 up more than 16% since the beginning of the year. The Dow Jones Industrial Average ended 8.8% down, and the Nasdaq Composite plunged 33.1%.