Wall Street might be giving the US economy a side-eye for a couple of reasons:
Inflation and Interest Rates: High inflation eats into corporate profits and reduces the value of future earnings. The Federal Reserve might raise interest rates to combat inflation, which can slow down economic growth and make stocks less attractive [SOURCE: finviz.com].
Uncertainty: A strong economy can be a good thing, but sometimes it can be too strong. If the Federal Reserve raises rates too aggressively, it could trigger a recession. The war in Ukraine and ongoing supply chain issues are also creating uncertainty [SOURCE: youtube.com].
It's important to remember that Wall Street is focused on short-term trends and future profits, while the overall health of the economy is a more complex picture.
