Key Facts
• U.S. stocks are trading near record highs but show signs of losing momentum.
• S&P 500 index has stayed below a 1% daily change for 17 consecutive sessions.
• This calm streak is the longest since December last year.
• Matt Maley, Chief Market Strategist at Miller Tabak, notes recovery from April’s tariff-related drop is slowing.
• Investors are fatigued waiting for broader gains beyond tech-led rallies.
• Narrow gains often signal investors seeking broader market strength.
• Earnings season has just begun, and trade negotiations remain uncertain.
• Speculation grows that U.S. interest rate cuts are months away.
• UBS strategist Aaron Nordvig highlights weaker seasonal stock strength in July.
• Nordvig believes most positive news is already priced into stocks, reducing risk-reward appeal.
Summary
The S&P 500 index, while trading near record highs, is showing signs of waning momentum, with daily changes staying below 1% for 17 consecutive sessions-the longest calm streak since December. Matt Maley of Miller Tabak attributes this to a slowdown in recovery from April’s tariff-related market drop. Investors are growing weary of waiting for broader market gains beyond tech-led rallies. Narrow gains often indicate a search for wider market strength, and without such signs, investors may retreat. With earnings season just starting, trade negotiations uncertain, and U.S. interest rate cuts expected months away, caution prevails. UBS strategist Aaron Nordvig notes that July’s typical stock strength is weaker, and most positive news is already priced in, reducing the market’s risk-reward appeal.
