Stocks are selling off for an unusual reason: the economy is running hot enough that traders now expect more rate hikes instead of cuts.

• The main growth trend is still pointing up, with no sign of a downturn in the data.
• The job market, usually the first place cracks appear, is not just healthy but accelerating.
• Strong growth means higher interest rates, and higher rates pull money out of stocks.
• The bullish comparison is 1995, a mid-cycle pause that kept the rally alive, not 1999 right before the dot-com bust.

Outlook: If the economy keeps running this hot, expect more pressure on stocks as markets price in tighter policy, with 2026 shaping up as a mid-cycle adjustment rather than a bubble top.