TechFlow news, December 5 — According to Jinshi Data, Bank of America strategists have warned that if the Federal Reserve adopts an overly cautious stance on the economic outlook, it could jeopardize a year-end stock market rally. As the S&P 500 approaches its record highs, investors are hoping for the best-case scenario—a Fed rate cut accompanied by declining inflation while the economy remains resilient. However, Bank of America strategist Michael Hartnett pointed out that such optimism would face a test if the Fed sends dovish signals at its upcoming meeting, as this might suggest a greater-than-expected economic slowdown. In his report, Hartnett wrote: "The only thing that could kill the 'Santa rally' is a dovish cut triggering a sell-off in long-dated bonds." He was referring to longer-term U.S. Treasury securities.
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