Here’s why stocks have tanked in August and what Wall Street expects to happen next

• The S&P 500 has dropped almost 5% in August after gaining 21% in the first seven months of 2023.
• Wall Street firms and market commentators are divided on whether stocks will resume their rally after this month. 
• Bears include Michael Burry and David Rosenberg, while Goldman Sachs and Fundstrat are more optimistic.

Before August, the stock market had soared all year. The S&P 500 gained 21% through seven months as investors piled into equities and Wall Street pulled back its recession forecasts.

But over the last three weeks stocks have turned lower, with the benchmark index falling about 5%.