TechFlow, Nov. 25 — According to Jinshi Data, UBS's securities division stated that the sell-off in the U.S. stock market may have come to an end, laying the foundation for a year-end rebound. Last week, stocks dropped sharply as investors questioned the prospects of further monetary easing by the Fed and exited crowded AI trades. The S&P 500 and Nasdaq 100 indices fell approximately 4% and 7%, respectively, from their late-October record highs, both dropping near their 100-day moving averages.
However, UBS believes that with benchmark indices finding support at this key technical level, systematic fund selling largely subsiding, and expectations for next month’s Fed rate cuts appearing back on track, equities could strengthen in the coming period.
"Our view is that the current de-risking phase has now concluded," wrote Michael Romano, Head of Equity Derivatives Hedge Fund Sales at UBS, in a report published last Sunday.
Romano expects the S&P 500 to rise toward 7000 by year-end, arguing that the November market correction has sufficiently reset positioning and created conditions for further gains. The strategist anticipates that the recent pullback may set the stage for a distinctive December—where momentum stocks are poised for strong performance (these stocks typically experience rapid and significant price swings).
