S&P 500 faces pullback risk amid AI bubble, US debt, Fed hawkishness, and geopolitical tensions.

Victor Dergunov warns that the S&P 500 may experience a near-term pullback and longer-term correction due to an unsustainable AI-driven earnings bubble fueled by hyperscaler spending. Additional risks include rising U.S. debt, hawkish Federal Reserve policies, and geopolitical tensions in the Strait of Hormuz, which could impact market liquidity and global growth. Dergunov maintains a cautious outlook with a wide year-end S&P 500 target range of 7,200 to 7,700 and anticipates a potential market meltdown within 2 to 5 years as the AI bubble unwinds.