US stock market shows signs of slowing momentum

The US stock market is displaying signs of slowing growth even as it trades at record levels, with declining volatility indicating weakening momentum. The S&P 500 has now gone 17 consecutive sessions without moving more than 1% in either direction, the longest such period of calm since December. According to Matt Maley, chief strategist at Miller Tabak & Co., this reduced market movement reflects investor fatigue following the sharp recovery from April lows. 

Market participants remain cautious amid ongoing uncertainty about US trade policy and the timing of potential Federal Reserve rate cuts. As Aaron Nordvik of UBS Securities notes, most positive factors have already been priced in, reducing the appeal of stocks at current levels.

Despite low volatility, which typically supports gradual gains, analysts warn against excessive optimism. With elevated valuations and no new catalysts emerging, further meaningful upside may require significant external drivers that have yet to appear.