Stock Market Rally Shows Signs of Fatigue as Retail Participation Wanes
The S&P 500's 30% rally since April faces headwinds as RBC Capital Markets flags weakening demand from buyers. Equity fund flows have slowed, with retail investors pulling back amid elevated valuations and seasonal pressures.
"This is evidence of buyers' fatigue," says Lori Calvasina, RBC's head of U.S. Equity Strategy Research. Passive investment flows have turned negative, compounding concerns about September's historical market weakness.
JPMorgan's Andrew Tyler echoes the caution, noting stretched positioning and declining retail activity could pressure markets further. The warning comes as investors weigh whether the Trump-era "Liberation Day" rally has run its course.