Economists are warning about record levels
of 'fragility' among the biggest US stocks, signaling a warning for the
market as a whole.
Despite the stock market hovering near all-time highs, major stocks are increasingly vulnerable to big fluctuations.
This is much like what happened before the dot-com bubble burst in the late 1990s.
According to Bank of America strategists,
'stock fragility' is on track to reach its highest level in more than
three decades among the largest 50 stocks in the S&P 500 index.
Stock fragility is a measure of how much a share price moves a day relative to its usual volatility, Bloomberg reported.
- The increased jitters among particular stocks is a warning for the broader market - especially when coupled with uncertainty around what could happen with tariffs and interest rates.
Some Wall Street bankers and business executives are also finding their enthusiasm for President Trump begin to falter amid this increased volatility.
The Economic Times
Ominous sign for S&P 500 has
analysts on edge as Wall Street wreck could be around the corner; here's
what they are
21 hours ago
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