Stock-market believers are looking past the roughest stretch in months for US equities and clinging to bets on a rally in the back half of the year once the Federal Reserve stops hiking interest rates.
The S&P 500 Index is coming off its worst week since Dec. 9, as hotter-than-forecast inflation data boosted speculation that the Fed will lift borrowing costs several more times, potentially pausing in July. That’s a steeper path of policy tightening than investors were bracing for just a few weeks ago.
