The Stock Market Sounds an Alarm as Investors Get Bad News About President Trump's Economy. History Says This Will Happen Next.
Interest rate hikes became more likely after the latest inflation report, and the stock market is already expensive by historical standards.
Overview
The S&P 500 (SNPINDEX: ^GSPC) and the Nasdaq Composite (NASDAQINDEX: ^IXIC) added 13% and 14%, respectively, through the first eight months of 2026. That puts both indexes on track for a fourth consecutive year of double-digit gains. But the bull market may be in jeopardy.
Investors recently got bad news about President Trump's economy. Inflation is not cooling as quickly as experts anticipated, raising the odds of interest rate hikes. That is consequential for two reasons. First, new rate-hike cycles have often coincided with stock market corrections. Second, the stock market is already very expensive by historical standards.
Details
Here's what investors should know.
Source
Originally published at www.fool.com.
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