Stock markets face correction risks amid high valuations

Stock markets are approaching all-time highs despite geopolitical crises and rising interest rates, though underlying technical indicators and high valuations suggest growing risks of a correction. Recent sell-offs in semiconductor, AI, and space stocks highlight how quickly market sentiment can shift.

Risks for investors include historically high valuations, thin liquidity during summer months, and weak seasonality. Even established blue-chip stocks are currently considered expensive and vulnerable to price corrections.

Individual company performance remains mixed: TUI is awaiting key financial results, Tesla has seen a recovery despite weak profitability, and Porsche is attempting to pivot its brand strategy toward value over volume. Meanwhile, certain luxury groups are showing signs of a turnaround, reporting increased organic growth in recent quarters following periods of stagnation.