Wall Street’s recent rally faces a potential reckoning as stocks surge without strong earnings to support them. The S&P 500 has climbed over 8% in the past year due to falling inflation, rate-cut hopes, and fading recession fears. Tariffs are impacting companies like Procter & Gamble and Whirlpool, leading to warnings about tariff hits. The market’s path higher has been greased by favorable financial conditions, but stretched valuations and fragile moments may indicate risks. Investors are cautioned about potential repricings if inflation or geopolitical shocks emerge. Corporate guidance will be closely watched for signs of demand softening or cost inflation.

Read more at Yahoo Finance: Wall Street’s riding high on relief, not results: Strategist