BofA Strategist Warns S&P 500 Rally May Face Headwinds

Global Gains Cast Doubt on S&P 500 Rally, Says BofA Expert

Author's Avatar
Feb 25, 2025
Summary
  • A BofA strategist warns that sustained S&P 500 gains may falter amid rising international market performance
Article's Main Image

Feb 25 - Serious concerns are growing among investors as the S&P 500 continued ascent invites more hesitation while European and Chinese stocks rally stronger than American ones. Bank of America Corp. strategist Michael Hartnett said that extended stalled attempts to reach new highs have begun causing major uncertainty among financial analysts. People now choose international stocks since domestic equities have been unable to move forward because the Magnificent Seven tech leaders, which drove US market gains since early 2023, show signs of strength.

1894367339714080768.png

This year, US stocks trail behind other indexes because the S&P 500 has generated limited returns below 2%, and core tech sector stocks have dropped 3.3%. The MSCI All-Country World Index has brought a 7% increase without US companies within its scope. A decline of the S&P 500 to 5,600-5,700 points would pressure investors to ask the Trump administration for financial intervention, according to Hartnett.

The sentiments in the emerging market are more concerned about high prices and heavy investments in artificial intelligence. Global economic conditions change all the time, so investors are always watching the market indicators to see if they need to ramp up additional measures if they do adjust.

Disclosures

I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours. Click for the complete disclosure