Veteran trader Tom Sosnoff warns of a potential 10-15% market sell-off, believing stocks are fully priced. S&P 500 earnings expected to grow 15% in 2026, with estimates for double-digit growth each quarter. Forward PE ratio at 22 times, nearing January 2022 peak levels.

Federal Reserve Chair Jerome Powell faces grand jury subpoenas over congressional testimony. Powell describes investigation as “unprecedented,” amid concerns about Fed independence. JP Morgan CEO warns of inflation risk if Fed’s independence is undermined. Jobs report shows 50,000 jobs created in December, below expectations.

SlateStone Wealth strategist questions Fed rate cuts amid cooling inflation and record stock market levels. Sundial Capital Research highlights bullish market momentum but advises caution on sentiment and valuation metrics. Uncertainty looms in markets due to Fed vs. President clash and potential impact on bond market.

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Read more at Yahoo Finance: Why a ‘nasty’ 10% to 15% sell-off in the stock market may be a few months away