TechFlow news, May 9 — According to Jinshi Data, Bank of America strategist Michael Hartnett said that despite U.S. efforts in trade negotiations, the surprisingly strong rebound in U.S. equities may have already ended. The strategist noted that the stock market's "reasonable" rally was driven by optimism over tariff reductions expected in the second quarter.
However, he believes equities will not rise further, as investors tend to "buy on expectations and sell on facts." Since Trump announced a delay in imposing certain tariffs on April 9, the S&P 500 has risen 14%, though it remains down 3.7% year-to-date, underperforming international markets. Hartnett recommends targeting bonds rather than stocks for 2025. Within equities, he favors international assets over U.S. ones.
In his report, he stated that U.S. equities are in the late stage of a structural bear market relative to non-U.S. markets. Fund flows support Hartnett's view. According to Bank of America's report citing EPFR Global data, approximately $24.8 billion has been withdrawn from U.S. equity funds over the past four weeks—the highest level in two years.
