Wall Street's stocks-are-cheap meme looks as if it will start coming under stress if what Citigroup calls a "profitless rally" continues.
European shares closed flat-to-lower on Thursday, pressured by downbeat data from the U.S. that included a jump in jobless claims and a drop in housing starts.
The Shanghai Composite rallied over 1 percent on Thursday as investors cheered news of easing regulations while Japan's Nikkei index closed off its five-and-a-half year peak after data showed that capital spending fell for a fifth straight month.
Some market watchers say they are starting to spot something that they haven't seen for a while: sellers moving back into stocks.
U.S. Treasury debt prices rose on Wednesday for the first time in a week after data revealed weakness in manufacturing and subdued inflation.
The euro fell to a six-week low against a buoyant dollar on Wednesday, hurt by an unexpectedly large contraction of the euro zone economy.
Gold fell for a fifth straight session, hitting a four-week low below $1,400 as the dollar strengthened to a six-week high versus the euro, clouding gold's weak technical picture.
Oil fell after data showed the euro zone was in its longest recession ever, while a stronger dollar and rising U.S. refined products stocks put additional pressure on prices.
The Nikkei resumed its market out-performance on Wednesday, rising to a fresh five-and-a-half year high as a weaker yen hovers around the 102 handle while other Asian stock markets pared initial gains.
The yen fell against the dollar on Tuesday for a fourth straight session, hitting its lowest level in 4 1/2 years as signs that the U.S. economy is improving.
Brent crude oil prices fell after a global energy watchdog described world supplies as "comfortable" and analysts forecast a continued build in the U.S. crude inventory, while gasoline rose 1 percent on expected inventory draws ahead of the summer driving season.
The S&P and Dow closed at fresh all-time highs on Tuesday after widely followed hedge fund manager David Tepper said he is "definitely bullish" on stocks.
Gold prices settled lower on Tuesday, as economic optimism and another intraday record high in U.S. equities sapped bullion's safe-haven appeal.
European shares pared losses to close at five-year highs on Tuesday, after influential hedge fund manager David Tepper told CNBC he is "definitely bullish" on stocks.
The 5.4 percent earnings yield is considerably below its historical average, but nearly triple the 1.9 percent yield of the 10-year Treasury.
U.S. stock index futures signaled a lower open on Tuesday, as fears that China's central bank will not provide stimulus to boost its economy saw the Shanghai Composite fall to a one-week low.
U.S. Treasurys prices reversed the previous day's slide as U.S. stock markets appeared poised for a lower opening.
The strong rally this year is being met with a heightened level of supply, setting up a big bet that retail investors will keep buying what Wall Street is selling.
Shanghai stocks fell to a one-week low on Tuesday amid fears that the People's Bank of China would not provide monetary stimulus to support the economy while Asia's other equity markets were mixed ahead of Australia's budget release.
Japan's radical monetary policies has created the most volatile government bond market in the world, analysts say.
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