Fri, 17 Oct 2025

Fri, 17 Oct 2025 How nervous are investors about the stock market?

As shares remain high, investors have been jumping at signs of trouble.

* US financial markets have been hit by periodic bouts of fear and uncertainty over various issues.
* Regional lenders First Republic Bank and Silvergate Capital warned of losses from alleged fraud, triggering a sell-off.
* Signs of rekindled US-China tensions, including tariffs and competition for rare earths, also caused market jitters.
* The bankruptcies of car parts supplier First Brands and subprime car lender Tricolor acted as triggers for nervous chatter in September.
* Over the last month, US shares have flattened after a strong climb since their tariff-induced rout in April.
* Despite this, major indexes such as the S&P 500 are still up around 13% since the start of the year.
* Analysts attribute the resilience of the stock market to improved corporate profits and enthusiasm for AI.
* However, high share prices and concerns about a possible bubble emerging in the AI industry have generated jitters among investors.
* The Bank of England has warned of "stretched valuations" and rising risk of a sharp market correction.
* Analysts such as James Reilley at Capital Economics say the brief nature of market drops shows how quickly worries can clear.
* Despite these concerns, many investors remain optimistic, with analysts boosting forecasts for where the S&P 500 might climb by the end of the year.
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