The persistent strength of the economy has surprised investors who had been betting on large interest-rate cuts by the Federal Reserve. The expectations of rate cuts had been a key factor supporting the stock rally in 2023, particularly for large technology companies like Apple, Amazon, and Meta Platforms. Recent data and market sentiment indicate a shift in expectations, with investors now anticipating the Fed's target rate to be at 5% by the end of the year, up from just above 4% the previous month. This change in expectations has led to concerns among investors about the potential impact on stocks, despite the overall strength in the economy and corporate profits. While major indexes have risen, most U.S. stock sectors have been weak this year.