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Published: Jul 20, 2022 4 min read

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Photo collage of a bear in a New York Subway sitting in-front of an Exit sign with a stock market chart in the background
Vanessa Garcia / Money; Getty Images

The stock market is rallying — but investors shouldn't celebrate just yet.

The S&P 500, an index commonly used to measure how stocks are doing overall, jumped 2.8% Tuesday, while the Dow Jones Industrial Average and the the Nasdaq Composite closed up 2.4% and 3.1%, respectively. Tuesday marked the largest one-day percentage gains since June 24 for all three indexes, and a welcome relief for investors. The S&P 500 was up around 0.9% during trading midday Wednesday as well.

While financial markets for much of the last two years were buoyed by stimulus money from the government and near-zero interest rates, stocks have been struggling after hitting their peak in January amid sky-high inflation and rising interest rates.