Don't trust the stock market rally — nothing fundamental has changed, strategist says

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There remains a significant chance that the Fed will be pushed into another rate hike, one strategist warns.

Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told CNBC's "Squawk Box Europe" he doesn't trust the current equity rally because fundamentals around higher-for-longer interest rates have not changed.LONDON — Stocks are heading for a bumper week, but there are many reasons to be wary, one strategist warned on Friday.

"In short, we don't believe this rally," Salman Ahmed, global head of macro and strategic asset allocation at Fidelity International, told CNBC's " "We had tough later part of summer, there was focus on tightening of financial conditions, what was coming from the key central banks." "Nothing has changed in a fundamental manner. So we still think that we are going to see more problems ahead as thisindex is on course for its best weekly performance since late March, according to LSEG data. That comes off the back of a dire October, which was its worst month of the year, and losses in August and September.and surrounding commentary as a sign that rates have peaked and cuts are within view.

Markets are focusing on the sharp increase in long rates, which is helping the Fed tighten financial conditions — but a hot jobs print on Friday and another sticky print on inflation could well force it to implement another hike, Ahmed added.

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