The S&P 500’s 25% YTD gain has raised concerns about its valuation. The market is priced for perfection, relying on falling interest rates, resilient earnings, and sustained investor confidence. The tech sector, while resilient, shows a divergence in valuations between the broader space and the “Magnificent 7” mega-cap stocks. While the market’s outlook remains positive, investors should exercise caution and consider potential risks.
Largecaps showing no fundamental change despite market bounce: Nischal Maheshwari
Investors are closely watching sectors like banking, manufacturing, auto distribution, and aviation after a recent rate cut. Analysts see temporary margin pressure for banks and
December 8, 2025