U.S. stocks may not be in a bubble, but a pullback could be near

Some market participants believe the relentless U.S. stock rally is poised for a breather, even if it remains unclear whether equities are in a bubble or a strong bull run.

“A lot of good news is priced into the market,” said Michael Arone, chief investment strategist at State Street Global Advisors. “From my perspective that just suggests that the risks are skewed to the downside.” Significant sell-offs followed the last two times the index exceeded those levels: a 10 per cent drop in the S&P 500 in January 2018 and a 30 per cent plunge as COVID-19 emerged after the index topped that level in January 2020.

“The sentiment backdrop right now … makes the market vulnerable to a turn lower,” said Kevin Gordon, senior investment strategist at Charles Schwab.

Finance Finance Latest News, Finance Finance Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

US Stock Futures Steady After S&P 500 Hits All-Time HighUS stock futures remain steady as investors focus on fresh economic updates despite sticky inflation data. The S&P 500 and Dow Jones Industrial Average hover just above the flatline, while the Nasdaq 100 contracts are little changed. Optimism persists that the Federal Reserve will cut interest rates within months, despite higher-than-expected core consumer inflation. Investors await wholesale inflation and retail sales data on Thursday. Bitcoin continues its rally, trading at around $73,290.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »

US Stocks Rise as S&P 500 Hits Historic CloseUS stocks edged higher on Monday after the S&P 500 index notched a historic close, as investors prepared for the first key inflation update of the year and the next wave of earnings reports.
Source: YahooFinanceCA - 🏆 47. / 63 Read more »