Week InReview: June 21, 2024

Wall Street traders show signs of fatigue on stock buying.

Buyer exhaustion | US stocks retreated after a rally to all-time highs spurred calls for a near-term pullback amid signs of buyer fatigue. The S&P 500 briefly topped 5,500 before losing traction. The high-flying tech group came under pressure, with the Nasdaq 100 down after a seven-day advance. But bulls remain. According to Stifel's Barry Bannister, the S&P 500 may rally to the 6,000 mark before the end of 2024, if past market manias are any guide. However, like prior “bubble” episodes, this one eventually has to pop, also. By mid-2026, Stifel expects the gauge to sink back to where it began this year — around the 4,800 level — erasing a fifth of its value. Wall Street is gearing up for a quarterly event known as “triple witching” that will see some $5.5 trillion worth of options tied to indexes, stocks, and ETFs fall off the board, according to an estimate from SpotGamma.

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