'The market has had every reason to sell off'
The stock market has defied expectations of a sell-off, with the S&P 500 rising to near record highs despite high bond yields and economic concerns. Investors are cautious ahead of the earnings season, and small-cap stocks are outperforming large-cap stocks. The market's resilience is surprising given the reasons for a sell-off, including high inflation and rising bond yields.
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- β The S&P 500 rose to near record highs despite high bond yields.
- β Small-cap stocks are outperforming large-cap stocks in the market correction.
- β The current U.S. inflation rate is 3.4%.
- β The S&P 500's earnings are poised to rise this year at the fastest rate since 2021.
What changed
The S&P 500's new all-time high on Tuesday, despite being described as one of the most hated records in recent memory, indicates a shift in market sentiment.
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Stock market shows resilience despite sell-off warnings
The stock market has defied expectations of a sell-off, with the S&P 500 rising to near record highs despite high bond yields and economic concerns. Investors are cautious ahead of the earnings season, and small-cap stocks are outperforming large-cap stocks. The market's resilience is surprising given the reasons for a sell-off, including high inflation and rising bond yields.
Why it matters
The stock market's performance is closely watched as it reflects the overall health of the economy. The current market trends are significant as they influence investor sentiment and decisions. The upcoming earnings season is expected to provide more insights into the market's direction.
What is confirmed
- The S&P 500 rose to near record highs despite high bond yields.
- Small-cap stocks are outperforming large-cap stocks in the market correction.
- The current U.S. inflation rate is 3.4%.
- The S&P 500's earnings are poised to rise this year at the fastest rate since 2021.
Still unconfirmed
- Wall Street expects the S&P 500's earnings growth rate to at least get cut in half in 2027.
What to watch next
- The upcoming earnings season
- The release of inflation data
- The movement of bond yields
confidence 85%Sources used for this update (14)
- Yahoo Finance β 'The market has had every reason to sell off' β and it hasn't
- Barron's β A Scary Stock Market Divided Has Opened Up. Where It Goes Next.
- Yahoo Finance β S&P 500 alarm bells are starting to go off
- Seeking Alpha β One Trade, Two Markets, One Hidden Correction (NYSEARCA:RSP)
- MarketWatch β You might be shocked by how many stocks are in a bear market right now
- finance.yahoo.com β Stock market today: S&P 500 and Nasdaq rise, Dow slips amid bond market caution
- www.nerdwallet.com β Inflation Stays at 3.4% in August; Energy Costs Rise Again - NerdWallet,Finance smarter
- reason.com β The 'World's Oldest' Bartender's Very Illegal Basement Bar
- www.cnbc.com β How the S&P 500 can be at record highs, while the market remains oversold
- www.outlookmoney.com β Smallcaps Are Bucking The Market Sell-Off While Largecaps Suffer: Hereβs Why
- www.fool.com β Wall Street Expects the S&P 500's Earnings Growth Rate to at Least Get Cut in Half in 2027. Should Investors Be Worried?
- flipboard.com β 'The market has had every reason to sell off' β and it hasn't
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