Despite the solid rebound in the S&P 500, nearly $28 billion was redeemed from US stocks in the week through Aug. 6, while money market funds attracted about $107 billion, according to a Bank of America Corp. note from citing EPFR Global data.
On the macro front, BofA’s Michael Hartnett said a majority of the bank’s clients are betting on a “Goldilocks” outcome, which implies an economy that’s running neither too hot nor too cold. He said investors expect a scenario where lower rates would fuel a rally in equities.
Kenwell at eToro says that it would be a healthy price action for stocks to consolidate after a big rally — either by pulling back or digesting the move by trading sideways.
“This pullback would likely be viewed as an opportunity for investors to buy the dip rather than run for the hills,” Kenwell said.
“We believe stocks will stay supported amid solid fundamentals, but fresh headlines in the coming week may challenge investor sentiment that remains vulnerable to tariff, economic, and geopolitical risks,” said Ulrike Hoffmann-Burchardi at UBS Global Wealth Management.
