The Stock Market Rally Might Burst Into Flames Next Year If This Doesn't Happen
Increased geopolitical tensions out of North Korea is one downside catalyst to watch this year for the stock market, according to JJ Kinahan, chief market strategist at TD Ameritrade.
Kinahan said the selloffs seen in the markets over the past few months were North Korea driven. Further, if investors don't receive clarity on tax policy from the Trump administration the market may come under pressure.
On the flip side, one upside catalyst could be another strong earnings season, which starts in just a matter of weeks. The last two reporting seasons saw double-digit year-over-year gains, which helped push stocks to fresh record highs.
At the moment, investors remain darn bullish.
Stocks rose sharply by the closing bell on Monday, Sept. 11, as Hurricane Irma's preliminary damage wasn't as devastating as some had predicted and North Korea didn't perform any nuclear tests over the weekend.
The S&P 500 rose 1.08% to a new record at 2,488.11. The Dow Jones Industrial Average finished trading up more than 250 points, or 1.19%, and soared above 22,000 for the first time since Sept. 1. And the Nasdaq jumped 1.13%.
The S&P 500 Index and the Dow both enjoyed their largest gains in six months, according to data from FactSet.
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