Valuations may be playing big role

 

The idea that investors are enthusiastically betting on a weak economy doesn’t stand up to closer scrutiny.

That is, that a soft economy is better for stocks because central banks respond by lowering interest rates. 

For one, it isn’t weak at all. The U.S. labor market is still extremely robust, and prime-age employment rates actually edged up in April.

Bloomberg 11 May 2024 

https://www.wsj.com/finance/this-stock-market-rally-isnt-what-it-seems-602b0feb