S&P Breaks Out After July Momentum Bust, Yet Risks Remain
After July's momentum-stock slump, the S&P 500 pushed to new records, aided by broad leadership and a relief rally to Fed signals, suggesting near-term upside. However, analysts warn the move may have been fueled by leverage-driven gains rather than solid fundamentals, leaving room for a pullback. With 2026 earnings expected to rise around 30% and healthy GDP, the backdrop remains constructive, but secular risks—overvaluation, overbought conditions, and the specter of a lost decade—keep a cautious stance.
