The Financial Post reports in its Wednesday edition that a brutal day on Wall Street has raised doubts about U.S. stocks' performance during a typically strong period. A Bloomberg dispatch to the Post reports that the main issue lies with high-flying tech stocks, which have driven a 34-per-cent rise in the S&P 500 since April but have now stalled, shifting reliance to sectors vulnerable to signs of economic slowdown and waning consumer confidence. The Magnificent Seven tech stocks are off nearly 5 per cent this month. That group has accounted for virtually all of the market's gain this year. The artificial intelligence trade has started to wobble as investors worry the amount of borrowing needed to finance its build-out will become a burden. Just Monday, Amazon tapped the credit market for $15-billion in a bond sale. With technical indicators also flashing warnings Wall Street strategists are questioning whether a year-end rally is in the cards. LPL Financial strategist Adam Turnquist says, "We're running out of time." Year-end rallies typically start at the beginning of November, not after a drawdown halfway through the month. Mr. Turnquist sees "more pain ahead," as key indexes slide below key chart levels.
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