Overview
- The S&P 500 is on pace for a gain of more than 15% in 2025 after multiple record highs fueled by AI enthusiasm and expectations for easier policy.
- Traders assign an 87% probability to a Federal Reserve rate cut at the upcoming meeting, according to CME FedWatch.
- Yahoo Finance reports a market indicator described as a signal seen only once before, highlighting historical patterns investors are watching.
- Federal Reserve Chair Jerome Powell said in September that equity prices are "fairly highly valued," underscoring valuation risk.
- Analysts outline three potential catalysts for a 2026 downturn as leadership remains concentrated in AI heavyweights like Nvidia and Microsoft.