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Companies’ stock sales threaten to overwhelm the bull market

WSJ Markets said a wave of new share issuance is reviving concerns that parts of the rally may be in later-stage territory, echoing patterns seen in past runs.

Reported · Written up by our desk · Equities

The Wall Street Journal’s Markets section highlighted a new pressure point for the stock market, pointing to a growing number of companies tapping the equity markets.

According to WSJ Markets, the surge in share issuance is prompting some analysts to draw comparisons to later stages of previous rallies, when heavy supply of new stock can start to weigh on sentiment.

The outlet framed the current period as a test of whether strong demand for risk can offset the increased dilution risk from widespread stock sales.

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