On Friday, the stock market officially entered "correction" territory, with the S&P 500 Index ($SPX) closing more than 10% below its July peak. And while we might be in rally mode to start the week, there's plenty of reason to remain cautious as we head into a busy week for markets.
Stocks have fallen steadily over the past three months as a confluence of worrying factors is bringing market bears out of hibernation. Federal Reserve officials are talking about keeping interest rates “higher for longer” to continue fighting inflation, and the yield on the 10-year Treasury briefly rose above 5% recently, a level not seen since 2007. Investors are also concerned about escalating tensions between Israel and Hamas, and reactions to the latest round of corporate earnings have been mixed so far.
