More firms on Wall Street are bracing for a stock sell-off. Here’s why JPMorgan, Wells Fargo, and others say the market’s huge gains are at risk.

• Some Wall Street analysts are sounding the alarm for a coming sell-off in stocks.
• That comes as the S&P 500 enjoys its best year since 1927, gaining 18% from January.
• But a closer look at inflation and the hype for AI shows a grim outlook, experts say.

Stocks so far have blown past investors’ expectations for 2023 – but some analysts are bracing for a sell-off as the market approaches new highs.

That comes as the S&P 500 enjoys one of its best years since 1927, largely thanks to Wall Street’s excitement for artificial intelligence. After sliding 20% last year, the benchmark index is now up 18% from the start of 2023, and is just 6% away from retouching its all-time-high of 4,796, which it notched in January 2022.