US stocks ride an earnings hot streak into a risky summer
Major US equity benchmarks enter the summer at record highs, lifted by the strongest profit growth in nearly five years. But analysts flag several risks that could make the months ahead bumpy. The Iran war, the rate path and stretched valuations top the list.
US stock markets reached Memorial Day, the unofficial start of summer, sitting at record highs. According to MarketWatch, the climb in the S&P 500 and other major benchmarks was fuelled by the fastest corporate profit growth in nearly five years.
Yet analysts warn the months ahead may not be smooth. The Iran war's effect on oil prices, uncertainty over the central bank's rate path, valuations above historical averages, and the volatility that thin summer trading volumes can bring are among the risks flagged.
The piece attributes these assessments to analysts and notes they are not investment advice. It says investors will need to weigh the momentum of earnings season against the possibility of macro shocks.
More from North America
Tariffs eased, but US-China trust has not returned, CNBC says
A CNBC newsletter argues that despite recent tariff de-escalation between the US and China, mutual trust remains weak. As the world's largest consumer market, the US stays a prized destination for Chinese firms working to address local concerns.
UAE says OPEC exit was a strategic economic move, not political
The United Arab Emirates said its decision to leave OPEC was a strategic economic choice rather than a political one. Officials told CNBC the move lets the country deploy spare production capacity freely and align output with its energy diversification plans.
BlackRock weighs $5-10 billion investment in SpaceX IPO
BlackRock is in talks to commit between $5 billion and $10 billion to SpaceX's upcoming initial public offering, The Information reported. The investment, if completed, would mark one of the largest single-firm commitments to a US listing in years.