There’s ‘a disconnect’ between stock-market rally and Fed pivot expectations

This year’s stock market rally has been “very narrow” and may not be sustainable, according to Seema Shah, chief global strategist at Principal Asset Management.

U.S. stocks rose sharply Thursday, bringing the S&P 500 index’s gains this year to 7.7% despite a slowing economy, according to FactSet data. The U.S. economy expanded at a soft 1.1% annual pace in the first quarter, slower than Wall Street analysts’ forecast for 2% growth in gross domestic product.

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