U.S. stocks appear cheaper than they have since the early days of the Covid-19 pandemic—but such bargains won’t be enough to power the next leg of the bull market, investors say.
Although major indexes are still hovering near record levels, a punishing early-year selloff in technology and other growth stocks has brought valuations down closer to historical norms. Stocks resumed their declines this week, with the S&P 500 sliding 3.7% across Thursday and Friday after a hotter-than-expected inflation report bolstered the case for tighter monetary policy from the Federal Reserve.
