"Uncertainty Surrounding Fed Rate Hikes Could Impact Summer Stocks"

The summer months are typically slow for US stocks, but this year may be different as investors remain bullish on the belief that US inflation will fall more than the Federal Reserve forecasts. This sets the stage for a possible showdown with policymakers who want more interest-rate increases to push inflation back down to 2%. While the S&P 500 and Nasdaq Composite booked their longest streak of weekly advances in years, it remains to be seen whether the market has gotten ahead of itself by thinking that the Fed won’t deliver two more 2023 rate hikes. Ultimately, economic data will determine the outcome.