Stocks hit record highs, Stockton warns of downturn
Despite record-high stocks, analyst Katie Stockton sees signs of potential market pullbacks ahead.
S&P 500 closed at 6,909.79
Market up 17.5% in 2025
Stockton notes loss of momentum
Volatility increased since mid-October
Light trading volume this week
Market closes early for Christmas
Wall Street is celebrating a strong Christmas season, but some are skeptical about the sustainability of these stock levels. The S&P 500 rose 0.5% on Tuesday, reaching a record close of 6,909.79 and marking a 17.5% gain this year.
Stockton’s Concerns About Market Stability
Analyst Katie Stockton from Fairlead Strategies warns that a downturn could be on the horizon. In a CNBC interview, she noted a loss of momentum since mid-October, indicating increased market volatility.
Stockton highlighted that the S&P 500 has experienced 12 daily movements exceeding 1% since early October, with seven of those movements being downward. A close above 6,911 would be seen as a positive indicator; otherwise, a corrective phase may occur.
Trading Activity Leading Up to Christmas
Despite record levels, this week’s trading volume has been surprisingly low. With U.S. markets closing for Christmas Day, Tuesday saw only 64.84 million shares traded for the SPDR S&P 500 ETF Trust (SPY). This is significantly below the 30-day average of 86.14 million shares.
Overall trading volume on U.S. exchanges remained low at 14.4 billion, compared to the 50-day average of 18.6 billion.
Market Outlook Amid Holiday Slowdown
The holiday season typically leads to lighter trading activity, which could affect market dynamics. Stockton advises caution and suggests waiting for a more favorable entry point if current trends continue.
With Christmas approaching, investors are advised to stay vigilant as potential market corrections loom.
Sophia Clarke is a senior international journalist with nine years of experience covering global politics, human rights, and international diplomacy.
She earned her M.A. in International Relations and Journalism from the University of Oxford (2016), where she specialized in global governance, conflict reporting, and cross-cultural communication.
Sophia began her career as a foreign correspondent for BBC World Service and later joined The Guardian, where her insightful analyses and on-the-ground reporting from Europe, the Middle East, and Latin America earned her recognition for accuracy and integrity.
Now based in Paris, France, Sophia contributes to Faharas NET, providing comprehensive coverage of diplomatic affairs, humanitarian issues, and policy developments shaping the international landscape. Her storytelling combines investigative depth, journalistic ethics, and a strong commitment to amplifying underrepresented voices in global dialogue.
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