The S&P 500 has officially entered a bull market, defined as a 20% or more rise from the most recent low. The new bull market began on October 13, 2022, but the stock market’s rally is largely due to the US economy not falling into recession despite inflationary fears. The prevailing belief now is that the Federal Reserve will soon stop raising interest rates, but the persistent inflation could change that. Most of the gains for the S&P 500 this year have come from a small group of stocks, sparking concerns over its sustainability and the limited breadth of the rally.