"After over 300 days without a stock market correction, the S&P 500 and Nasdaq show signs of potential declines, with various economic factors at play."
"The consistent gains driven by the so-called Magnificent 7 stocks face a backdrop of lowered expectations for future earnings as consumer spending slows."
"A correction, defined as a 10-20% decline, may be necessary to counteract the market recklessness ignited by AI advancements over two years."
"While inflation remains significantly above the Fedâs target and a potential recession looms, some analysts believe GDP could still show positive growth."
The stock market's resilience over 300 days without a correction may soon come to an end, as both the S&P 500 and Nasdaq show signs of decline. Influential factors include slower consumer spending, lower Treasury yields, and decreased earnings expectations. The Magnificent 7 stocks have driven gains in 2023 and 2024, but Wall Street is pessimistic about future performance. With inflation above target levels, a potential recession could loom, igniting discussions about the necessity of a market correction to clear the recklessness spurred by advancements in artificial intelligence.
Read at 24/7 Wall St.
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