Stock Market’s ‘Rah-Rah Mob’ Confronts February’s Weak Record
- This month is historically among the three worst for equities
- Building bullish sentiment, Fed signals also raising red flags
Wall Street near the New York Stock Exchange.
Photographer: Michael Nagle/BloombergThis article is for subscribers only.
With the S&P 500 Index coming off its best stretch in nearly four decades, the road gets tougher for investors as the calendar flips to February — historically one of the rockiest times of the year for US stocks.
After a torrid rally of almost 20% since October that took the S&P 500 to its first records in two years, there’s ample reason for concern: Artificial-intelligence hype came in for a reality check with the latest batch of big-tech earnings; fevered speculation that the Federal Reserve would start easing next month has gone cold; and valuations remain elevated relative to history, evoking memories of the dot-com bubble for some strategists.