The stock market has seen a major rally recently. Another move lower looks likely.
closed Tuesday about 12% above its lowest close of the year, 3577, hit in early October. The main driver is that the rate of inflation is declining, evidence of which has emerged in multiple pieces of economic data. This means the Federal Reserve can soon slow down the pace of interest-rate increases, which are meant to cool inflation by reducing demand for goods and services. Rising interest rates are trouble for stocks because a slower-growing economy can hurt corporate profits.