The stock market rally of 2026 may face challenges as stocks are highly valued, with the S&P 500 trading at 22 times forward earnings. Earnings are expected to grow, but risks include weak job reports, potential lack of rate cuts, and uncertainty around tariffs and geopolitical issues.

Despite nearing record highs, the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average may face increased volatility. Concerns include economic cracks, consumer disparities, and unforeseen market-moving factors. Investors should be cautious as underlying risks persist beneath the surface of a seemingly resilient economy.

Read more at Yahoo Finance: Why the stock market could easily get spooked