Stocks are still too expensive even after falling from 2023 highs as inflation proves stickier than expected, Barclays says

• US stocks are still pricey as the sizzling year-to-date rally falters, says Barclays. 
• Equities valuations are still to high given the stubborn inflation environment. 
• Barclays has an 2023 S&P 500 target of 3,724, more than 6% lower than current levels.

Investors have pushed stock prices from this year's peak, but it looks like more downward pressure needs to be applied as high inflation is looking to be more stubborn than expected, Barclays says.