‘FOMO’ rules the stock market now

• Forget AI, the Fed, and inflation – “FOMO” is now the stock market’s dominant force.
• Equities started 2023 on a tear and solidified those gains in July, with the S&P 500 rising 3%.
• Bears including Morgan Stanley’s top strategist Mike Wilson have abandoned their gloomy forecasts amid signs the breakneck rally could last.

Forget artificial intelligence, forget inflation, forget the Fed.

A new force drove stocks higher in July: “FOMO”, the fear of missing out on a breakneck rally that’s caught much of Wall Street by surprise.