The stock market is heading into a catalyst-filled week as Fed Chair Jerome Powell gets ready to speak at Jackson Hole and big retailers report earnings.

President Trump's tariffs have tipped the economy toward stagflation, but investors have another serious problem in the stock market's elevated valuation.

Stock index futures were muted on Thursday, a day after Wall Street ended mostly lower as investors continued to await Federal Reserve Chair Jerome Powell's speech at Jackson Hole on Friday.

The stock market has been pricing in a strong economy, even if “conditions are lining up to disappoint those elevated expectations,” says Bob Elliott, co-founder of Unlimited Funds.

Futures for the main stock indexes were mostly pointing down after the so-called Magnificent Seven stocks slid for a second day on Wednesday. The group of highly valued technology stocks–Amazon, Apple,

Financial stability is at risk. Equity valuations are stretched, margin debt is over $1 trillion, and the S&P 500 trades at dot-com level valuations. Rate cuts could spark a stock market melt-up and trigger a bond market revolt, destabilizing the system.

President Trump's tariffs continue to affect global markets and the economy. Follow along for live updates on stocks, bonds and other markets, including the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite.

A flight to quality trade happens when investors begin to get more defensive and risk-averse, buying stocks that they perceive as higher-quality and avoiding low-quality ones. It’s typical of a market that is seeking safety as some investors bail out, and may presage a market drop.

Gift Nifty was trading around 25,085 level, a premium of nearly 2 points from the Nifty futures’ previous close, indicating a flat start for the Indian stock market indices.

US stocks mostly slid on Wednesday, continuing a bruising stretch for tech stocks as investors weighed the latest retail earnings and assessed Federal Reserve minutes for clues on interest-rate cuts.