A "bear trap" that could cause investors to suffer significant losses appears to be present in the significant stock market rally this summer, Glenmede strategists said in a report released on Monday.

Investors already seem to be evaluating several aspects of this summer's strong bounce, such as the possibility that the Federal Reserve won't raise interest rates as quickly as previously anticipated.

The figures In a stretching of the economic muscles, the U.S. added a scorching 528,000 new jobs in July, and the jobless rate dropped to pre-pandemic levels. However, the strong data can fuel concerns about inflation and raise interest rates. The surge in hiring far exceeded expectations on Wall Street. The Wall Street Journal surveyed economists, who predicted 258,000 additional...
Hawkish Fed remarks will probably prevent early Wall Street trading from being affected by expectations of a change in China's Covid policy. Tuesday's trading in U.S. market futures was uneven, the dollar dipped versus a basket of currencies, and Treasury yields leveled out as investors waited for China's tough Covid health regulations to relax after the country's rare weekend protests. However,...