Fiscal, Debt and Valuation Correction Risk

Yardeni has reduced his S&P 500 target to 7,900 and warns that rising yields and stagflation could drive a three-to-six-month correction, while Tom Lee maintains a bullish above-8,200 year-end target. The wide strategist disagreement underscores SPY's dependence on AI earnings overcoming elevated multiples, fiscal pressure, and a possible 8%-10% pullback.