Rising Risk of S&P 500 Correction

RBC Capital Markets has flagged a 5-10% drawdown in the S&P 500 as new U.S. tariffs on China, Mexico, and Canada take effect.

Key Concerns

🔸 Overbought Market: Equities were already stretched in terms of positioning.
🔸 Complacency Risk: Many investors viewed tariffs as mere negotiating tactics.
🔸 Corporate Challenges: Tariffs could hit EPS, margins, demand, and business confidence.
🔸 Inflation Pressures: Rising costs may dampen post-election optimism for 2025.

How to Track Market Trends?

📊 Bulk Ratings API - Analyze stock downgrades and risk sentiment shifts.
📊 Sector P/E Ratio API - Gauge valuation shifts across industries.

With tariffs reshaping economic outlooks, investor caution is rising—making market reactions more unpredictable.