economy
The unofficial start to summer could be tough for stocks. Here's what's ahead
It wouldn't be a surprise if stocks soon took a breather heading into the summer months, following their recent run-up.
TL;DR
- The S&P 500 reached all-time highs in May but may soon take a breather.
- Market consolidation is expected as fundamentals catch up to prices.
- Exceptional market performance despite risks like the war in Iran and rising yields.
- Investor cash holdings have decreased, a potential sell signal.
- Upcoming economic data (PCE price index) and earnings reports could influence markets.
- June is historically a weak month for the stock market in midterm election years.
- Strong corporate earnings from AI investments and resilient consumer spending provide a positive long-term outlook.