This year began in stark contrast to its predecessor, with the major market indexes gaining 20% or more from their respective bottoms to kick off 2023. That said, the market recovery has been largely uneven, with technology stocks leading the gains while other sectors of the market have lagged.

Since late July, however, the uptrend has lost its momentum, and the indexes gave back some of those earlier gains. Wall Street might finally be awakening to the reality that the Federal Reserve Bank could keep interest rates higher for longer, and the full recovery will take time. This realization has some investors running for the exits, but that could be a costly mistake.

While some investors view the recent market weakness as a harbinger of things to come, Wedbush tech analyst Dan Ives is much more upbeat. He acknowledges in a note to clients last week that the Fed stance and rising Treasury yields suggest that interest rates could remain elevated for some time, causing "white knuckles" on Wall Street. Further exacerbating the situation is the seemingly relentless campaign of antitrust lawsuits leveled at big tech by the Federal Trade Commission (FTC).

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Source Fool.com