Many companies featured on Money advertise with us. Opinions are our own, but compensation and
in-depth research may determine where and how companies appear. Learn more about how we make money.

By:
Published: Aug 09, 2022 8 min read

Money is not a client of any investment adviser featured on this page. The information provided on this page is for educational purposes only and is not intended as investment advice. Money does not offer advisory services.

: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City
Getty Images

Stock prices appear to be making a comeback from their June lows. Will it last?

Stocks had a rough start to 2022. The S&P 500 ended the first half of the year down 20.6% — its worst showing for the first half of a year in more than five decades. But while stocks officially entered a bear market in June, they've since rallied.

The S&P 500 marked its third straight weekly gain last week, and the benchmark index is now down just around 14% for the year. Should investors get their hopes up yet?

“We’re not out of the woods yet, but the market seems to sense that better things lie ahead for the economy and for stocks," says John Stoltzfus, chief investment strategist at Oppenheimer Asset Management.

Here's what experts say about whether or not this stock market rally will continue.

Investors are getting more optimistic

Investors have been extremely pessimistic in recent months. But when investors get that bearish, there's room to rally, Stoltzfus says.

And we're seeing that pessimism turn around. The American Association of Individual Investors' most recent sentiment survey showed that pessimism among investors about the short-term direction of the stock market fell for the fourth straight week while optimism was above 30% for the first time in over two months.