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Wall Street on Edge Over Potential 'Flash Crash' Amid Historic Rally

As the S&P 500 nears its best first quarter in five years, market analysts warn of overvaluation and possible Federal Reserve rate cuts.

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People walk by the New York Stock Exchange (NYSE) on March 20, 2024 in New York City.

Overview

  • Wall Street braces for potential 'flash crash' amid historic stock market rally, with JPMorgan and Goldman Sachs highlighting risks of a major sell-off.
  • S&P 500 approaches its best first quarter since 2019, driven by gains in major indexes and optimism over artificial intelligence and tech stocks.
  • US stocks exhibit mixed performance as investors digest strong GDP data, jobless claims, and corporate news, including Apple's downgrade and Home Depot's acquisition.
  • Oil prices and Bitcoin see significant increases, adding to the complexity of the current financial landscape.
  • Market analysts caution against overvaluation and anticipate possible interest rate cuts by the Federal Reserve in response to inflation data.