What concerns are investors expressing about the US stock market?

Investors are concerned about the potential for a market pullback due to high valuations and the upcoming release of the July consumer price index report, which could trigger volatility if inflation is higher than expected.

How have August and September historically performed for the S&P 500?

Over the past 35 years, August and September have been the worst-performing months for the S&P 500, with the index declining an average of 0.6% in August and 0.8% in September.

Home / Business and Economy / Inflation Fears Threaten to Derail US Stock Market's Record Run

Inflation Fears Threaten to Derail US Stock Market's Record Run

Q: What is the current performance of the S&P 500 index?

The S&P 500 index is up over 7% so far this year and is within 1% of its all-time closing high set in late July 2025.

8 Aug

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Summary

S&P 500 up over 7% this year, nearing all-time high
Strategists warn of potential market pullback due to high valuations
Upcoming CPI report could cause volatility if inflation is higher than expected

Inflation Fears Threaten to Derail US Stock Market's Record Run

As of August 8th, 2025, the US stock market's rally is facing a fresh test, with investors closely watching the upcoming inflation data for any signs of trouble. The benchmark S&P 500 index has surged over 7% so far this year and is within 1% of its all-time closing high set in late July.

However, some strategists have cautioned that the market may be primed for a potential pullback after its largely unabated climb over the past four months. This rally has pushed valuations to historically expensive levels, with the S&P 500 trading at 22.4 times its earnings estimates for the next year, well above its long-term average.

Adding to the concerns is the seasonally treacherous period for stocks, as August and September have historically been the worst-performing months for the S&P 500 over the past 35 years. The index has declined an average of 0.6% in August and 0.8% in September during this time.

The upcoming release of the July consumer price index report on Tuesday could be a key catalyst for market volatility. Data showing higher-than-expected inflation could undermine the growing expectation for impending interest rate cuts, potentially triggering a correction in the market.

Disclaimer: This story has been auto-aggregated and auto-summarised by a computer program. This story has not been edited or created by the Feedzop team.