Market Pullback Looms Amid Inflation Gaps | Durham News

Bank of America is raising its S&P 500 target but sounding the alarm on an impending pullback—warning that we’re overdue for a market dip given historical patterns and current inflation risks. With only one 5%+ correction this year and the last major drop occurring in 2025, September and October loom as historically weak months. The bank highlights a troubling gap: markets expect inflation at 1.7%, but their economists predict 3.3% next year, with a slow decline afterward. Compounding the issue, central bank support is waning, stock buybacks are slowing, and new supply is surging. Plus, earnings growth is increasingly tied to volatile AI-driven gains, while free cash flow lags behind reported profits—raising serious questions about underlying strength.

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This is an automated, high-level news summary based on public reporting.
Sources:
https://www.heraldsun.com/news/business/article317245961.html#storylink=partnerdigest_the

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