S&P 500 Rallies in 2023 But Still Faces Headwinds on Path to New High

The S&P 500 has posted a strong 14% gain in 2023 so far, but remains below its 2022 peak and is still in a bear market.

Rising Treasury yields have increased competition for stocks and prompted equity allocation trimming.

Economic growth and earnings rebound forecasts provide some counterbalancing optimism.

Fed rate hike outlook has softened, with markets pricing in unchanged rates in coming months.

While risks persist, historical precedent suggests the wall of worry can eventually be climbed, but a new high may not be imminent.