The stock market is at a critical juncture. Wall Street is convinced it will resolve in the bulls' favor

The S&P 500 sits just below a record high, but the median stock is in a 16% drawdown, with semiconductors 17% below their peak and big banks 13% off. Goldman Sachs' Lee Coppersmith says breadth is at its weakest since the DotCom Bubble, yet still favors higher SPX levels over the next 1-3 months. Morgan Stanley's Mike Wilson argues rising yields have de-rated the average stock ahead of earnings, leaving room for a catch-up if yields stabilize, while Deutsche Bank downgraded tech but sees rotation into other sectors and small caps easing breadth concerns. Trivariate Research finds only 34% of large-cap stocks beat the S&P 500 over the past 12 months, near the low end of its historical range. The author sees a critical juncture as credit spreads widen and the Russell 2000 sits at its 200-day moving average.

Summary written by Upside AI from the original article. Read the source for full details.

Read the original on CNBC ↗

All news →