The Stock Market Could Drop: 2 Urgent Warnings From Former Fed Chair Jerome Powell Explain Why.
The stock market's expensive valuation is particularly concerning alongside the prospect of higher interest rates.
The Stock Market Could Drop: 2 Urgent Warnings From Former Fed Chair Jerome Powell Explain Why.
Overview
The U.S. stock market fell sharply in March after President Donald Trump authorized military strikes in Iran, but the major indexes recovered very quickly. Since April, the S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) have delivered astonishing gains of 12% and 18%, respectively.
The market has shrugged off geopolitical tensions and elevated oil prices because many companies reported first-quarter financial results that beat Wall Street's expectations. In particular, several technology companies tied to the artificial intelligence (AI) boom posted exceptional numbers.
Details
However, the stock market may be more fragile than it appears. Jerome Powell issued two critical warnings during his final months as Federal Reserve chairman, and investors who ignore the warnings may pay a high price for their complacency. Here's what you need to know.
Source
Originally published at www.fool.com.
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