Bank of America: The stock market rebound triggered by the US trade agreement will fade away

According to TechFlow's Deep Tide news on May 9, as reported by Jin10 Data, Michael Hartnett, a strategist at Bank of America, stated that although the United States is taking measures for trade negotiations, the surprising rebound in the U.S. stock market may have ended. The strategist noted that the stock market's “reasonable” rebound was driven by optimism over tariff reductions in the second quarter.

However, he believes the stock market will not rise further because investors “buy on expectations and sell on facts.” Since former President Trump announced a temporary suspension of certain tariffs on April 9, the S&P 500 index has risen by 14%, but it still fell 3.7% year-to-date, lagging behind international markets. Hartnett recommends targeting bonds for 2025 rather than stocks. Regarding stocks, he prefers international assets over U.S. assets.

In his report, he stated that compared to non-U.S. stock markets, the U.S. stock market is in the late stage of a structural bear market. Capital flows support Hartnett's view. According to a Bank of America report citing EPFR Global data, approximately $24.80 billion has been redeemed from the U.S. stock market in the past four weeks, marking the highest level in two years.