Major U.S. indexes (S&P 500, Nasdaq) remain near record highs, driven by strong corporate earnings, excitement around artificial intelligence, and expectations of additional Federal Reserve rate cuts.
The Fed has already delivered one cut in 2025, and investors anticipate more—if inflation and labor data allow.
Valuations, especially in tech, are stretched. Persistent inflation or a sudden slowdown in the job market could spark pullbacks.
Companies continue heavy share buybacks, supporting prices in the short term but signaling caution on long-term expansion.
