3 Words That Could Derail the Bull Market Rally This Year
Now at around 5,100, the S&P 500 continues to set new records. Much of the credit for the jump is tied to the performance of Nvidia and other "Magnificent Seven" stocks. However, there's also no denying that investor optimism appears to be on the upswing. Some analysts believe there is even more upside and that the benchmark index could hit 6,000 in 2025 and climb to 6,500 by 2026.
However, analyst sentiment and economic projections can change quickly. A lot of the growth inevitably will depend on the outlook for interest rates. Heading into 2024, the markets rose on hopes of several rate cuts from the Federal Reserve, spread out over the year. But with inflation still a bit higher than targeted rates and the Federal Reserve saying it's not convinced that it's the right time to cut rates, investors are starting to wonder. They know that the big risk for the success of the market is that rate cuts don't happen at all this year.
Three simple words -- higher for longer -- could derail the market's rally.
Source Fool.com
