The S&P 500 climbed nearly 15% over the first six months of the year. The Dow Jones Industrial Average climbed about 4% over that period, while the tech-heavy Nasdaq soared roughly 18%.
But, experts predicted, the stock market will likely struggle to sustain its breakneck growth over the remainder of the year as investors turn away from increasingly high prices and weather uncertainty centered on the economic outlook and the November"It has been a very impressive start to the year," Adam Turnquist, chief technical strategist at LPL Financial, told ABC news. "But as we look toward the second half, on a short term basis, we think the market is overbought.
In light of the gangbusters performance at the outset of this year, experts warned that the stock market would likely struggle to sustain the returns. At a basic level, the rise in stock prices that stretches back to last year will eventually reach a point where traders become reluctant to pour in funds at an elevated price tag, the analysts said.Even more, the positive trends in the economy face a number of threats.
Such economic uncertainty is compounded by a wide range of possible outcomes in the November election, Loukas added.