Market currently anticipates potential interest rate cuts based on soft economic data, which could lead to pressure on bank stocks and equity valuations. A scenario with unexpectedly strong economic data could result in positive stock earnings. However, a spike in CPI data could keep downward pressure on equity valuations. While pockets of the market are overvalued, the median stock is not significantly expensive. Valuation excesses are concentrated in low volatility growth stocks, such as mega tech companies and even non-tech companies like Costco. Investors are flocking to perceived safe stocks with bulletproof growth, leading to valuation pressures in certain sectors, while others like healthcare, finance, and energy remain unaffected.