A rocky start to the year for stocks

Key Takeaways

The market has lost momentum and breadth as prospects for more rate cuts in 2025 have dimmed.
Although it appears we’re in a bull market (with earnings poised to potentially lift stocks higher), we may be in the later stages, when things become more volatile.
One particular source of volatility has been pressure from rising long-term interest rates, combined with high valuations.
Jurrierin Timmer, Director of Global Macro at Fidelity, believes rising long-term rates could be a recurring source of volatility for the market in 2025.