WASHINGTON—There’s a common fear that Wall Street, buoyed by bullish sentiment, has gotten far ahead of the economic recovery and corporate earnings. However, despite continued volatility and uncertainty, analysts don’t expect a sharp market correction and say there’s still room for some upside for U.S. stocks ahead.
Much better than expected economic data combined with positive news on drug treatments and potential vaccines for COVID-19 have bolstered investor confidence in recent months. But a spike in coronavirus cases as reopenings advance and the potential for a Democratic win in November pose downside risks to the stock market, according to analysts.
