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As the S&P 500 ends above 6,400 for the first time, here are a few reasons for caution - MarketWatch

1. S&P 500 hit record level above 6,400, reflecting market optimism. 2. Confidence around Fed rate cuts increases as inflation rises slowly. 3. Tariff concerns may hinder consumer spending and impact economic growth. 4. Higher-income households driving spending, while lower-income consumers struggle. 5. Potential inflation increase tied to tariffs could disrupt current market gains.

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FAQ

Why Bullish?

The S&P 500's record high suggests sustained investor confidence, similar to past resilience before tax cuts in 2017 led to significant market growth.

How important is it?

The article highlights critical economic indicators like inflation and tariffs directly influencing S&P 500's sectors and overall market sentiment.

Why Short Term?

Immediate optimism is evident, but ongoing tariff concerns could destabilize this growth within months, reminiscent of 2018's market adjustments.

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