Wall Street can’t agree on where stocks are headed in the 2nd half of the year

After a strong start to the year for the stock market, Wall Street is divided over whether the gains can continue or if the rally is set to fizzle out in the second half of 2023.

The S&P 500 has surged 14% so far this year, while the Nasdaq 100 is up an astounding 37%. The gains are polar opposite to the losses experienced in 2022, and growing excitement for artificial intelligence stocks has helped power the recent rally.

But there’s also fundamental progress that can help explain why stocks are performing better today than they were in 2022. For one, inflation continues to show signs of easing, which should give the Federal Reserve some breathing room in its monetary tightening policy. Additionally, the job market remains resilient and corporate earnings were better than feared.

Source: Business Insider