The recent stock rally has all the hallmarks of a bear market rally, according to an analysis from Citi Research. The stock hit a recent low in mid-June when the S&P 500 entered a bear market, meaning it is down more than 20% from its all-time high. Since then, the index has rallied a few times but ultimately failed to reach new highs, a pattern commonly known as a bear market. From mid-June, the index is up 17% through August 16, thanks to better-than-expected corporate earnings and economic data showing inflation is starting to cool, but the U.S. economy is likely to no recession. At the end of July, the central bank posted a second consecutive 3/4 percentage point increase and appeared to remain open to the next move should inflation cool. That sent stocks higher. Fedspeak poured water on the recovery, however, the rally lost ground, as the Fed has since backed away from the market’s dovish perception and reiterated that it is unlikely to turn around a rate cut in the coming weeks. next year. In mid-August, minutes from the July meeting showed the Fed expected rate hikes to continue until inflation fell significantly. Many central bank regional leaders said they do not see the Fed easing any time soon. Cleveland Federal Reserve President Loretta Mester said Wednesday she sees the central bank’s benchmark rate hitting 4% with no rate cut through the end of 2023. Fed President St. Louis James Bullard and New York Fed President John Williams both said they would raise rates. will likely continue without a cut next year. At the end of August at the Jackson Hole, Wyoming symposium, Fed Chairman Jerome Powell said the central bank will continue to use its tools to combat inflation and warned that the US could experience “a little bit of a hit” pain” before the interest rate hike. “Prior to last week’s speech, markets raised rates until next March, but then cut rates shortly after,” said Brad McMillan, chief investment officer at Commonwealth Financial Network. McMillan, chief investment officer of Commonwealth Financial Network, said. “However, after Friday’s speech, markets are now expecting that rate cut to be delayed until at least the second half of 2023.” That sent stocks plunging and all major averages ended the month lower. The S&P 500 was down 4.2% for the month and down more than 16% year-over-year through Wednesday’s close. Stocks could fall further There could be more pain in the eyes of investors as falling prices could mean a retest of the stock’s lows. “We don’t believe equities have bottomed out, especially in light of the bond market, with the yield curve inverting on October 2 and 2,” said Michael Landsberg, chief investment officer at Landsberg Bennett. -30, which is reflecting tough economic times to come. Personal property management. “While many investors are focused on retesting the mid-June low, we believe the market is likely to drop below that threshold,” he added. He added that although the market was down towards the end of the session, this is not the time to buy. “Investors should be fine walking or crawling in this environment, as this is not a sprint,” he said. – Michael Bloom of CNBC contributed to this report.