The stock market is ‘priced for perfection.’ Here’s what could drive a nearly 20% slump for the S&P 500 next year.

The stock market is ‘priced for perfection.’ Here’s what could drive a nearly 20% slump for the S&P 500 next year. Clocktower strategist sees earnings faltering amid rate hikes and rising energy prices Meet Chunk, the 2025 Fat Bear Week champion. A Clocktower strategist is predicting a market pullback in 2027. .

Carmack/NATIONAL PARK SERVICE/ In 2022, the wheels came off the stock market, largely blamed on interest-rate hikes, slumping bonds and energy shocks from Russia’s invasion of Ukraine. Our call of the day from alternative asset management and advisory firm Clocktower’s chief macroeconomic strategist Eric Wallerstein has warned of similar fallout for 2027 that could push the S&P 500 Copyright ©2026 MarketWatch, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8 Black Monday’s stock-market warning signal came from the bond market, and it’s back, says Wall Street veteran Meta sees a price-target boost as JPMorgan says Muse agent has potential to become the top AI application since ChatGPT As the Trump-Xi meetings unfold, investors should watch for this hidden AI trade ‘We made a bad, bad decision’: I learned the hard way how to manage my aging father’s money Barbara Kollmeyer is based in Madrid, where she leads MarketWatch's premarket coverage of financial markets and writes the Need to Know column.

She has worked in London and Los Angeles for MarketWatch previously. Follow her on Twitter @bkollmeyer. Intraday Data provided by FACTSET and subject to terms of use.

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