Stock Market Update

[BRIEFING.COM] The stock market looks stumped in a way. Thus far, the biggest stump factor of all is that the buy-the-dip approach that has worked like clockwork for a long time doesn't appear to be working. That doesn't mean it can't start working again, only that it isn't working now; hence, buyers are reticent to step into the action.

The timing of the breakdown is pertinent in that it has coincided with the arrival of disappointing economic data and stepped-up tariff talk that has raised questions about economic growth prospects.

Those questions, in turn, feed into questions about the achievability of high earnings growth estimates since slower economic growth will create a more challenging earnings environment.

Consequently, market participants have been reluctant to pay up for projected earnings growth that might not materialize -- a thought that gets challenged whenever economic data disappoint. According to FactSet, calendar-year 2025 earnings for the S&P 500 are expected to increase 12.1% versus a 14.3% projected growth estimate on January 30.