U.S. stocks are on track to end 2021 with another year of outsize gains. Many investors aren’t expecting a repeat in 2022.
The S&P 500 has climbed 26% so far in 2021, after rising 16% in 2020. Rip-roaring corporate profits and easy monetary policy have fueled the run. Earnings growth is expected to moderate next year, and the Federal Reserve is pursuing plans to raise interest rates, chipping away at key supports for the stock market’s rally.