The Stock Market Is Coming Back to Life, but the Bear’s Still Here

The stock market is trying to break its downtrend. That’s an encouraging sign, but it by no means indicates that the market’s woes are over.

The


S&P 500


has gained just over 3% for the year, though it remains almost 20% below its all-time high, keeping it in bear market territory. Spurring the recent gain has been that the rate of inflation came in lower than the prior result. That means the Federal Reserve could soon pause its interest-rate hikes, which are meant to lower inflation by reducing economic demand. Once the rate hikes are over, the market can enjoy more certainty on when the bottom in economic growth will occur.