S&P 500 Gets Another Heat Check as Rally Falters: Markets Wrap

Wall Street’s relentless surge from April’s meltdown keeps showing signs that the stock market is overstretched, spurring calls for a breather at a time when the classic dip-buying strategy stays firmly in place.

Nobody needs to look hard to find warnings that the market looks frothy after a 36% surge from April’s nadir pushed valuations to levels associated with periods of exuberance. While the AI euphoria has kept the party going for equities, recent chatter about a bubble forming in the group that has powered the bull market has drawn the attention from investors around the world.