From Investing.com: 2025-05-02 09:46:00

The stock market is trading at a high multiple with a projected earnings growth rate of 9% in 2025, despite shrinking in Q1 and facing tariff pressure. Many companies, including Snap and General Motors, are pulling away revenue and earnings guidance for the second quarter due to uncertainties. Economists warn of shortages and layoffs in industries like trucking and retail as cargo shipments plummet. Inflation is a concern for consumers, with credit card holders making minimum payments and Buy Now Pay Later users funding grocery purchases. Economic data is already weak, with Q1 GDP falling. Real estate and trade data also show signs of slowing growth. Job growth in April was below expectations. The stock market may face trouble unless tariffs are resolved, tax cuts extended, and deficits managed. A retest of April lows could be possible if conditions are not met.



Read more at Investing.com: S&P 500: Priced for Perfection