Is there still a 0.3% upside in the US stock market? Bank of America Hartnett: Sell when the S&P breaks 6300 points!
Hartnett believes that the market's "bubble risk" is increasing day by day, and the "Big Beautiful Act" is the latest catalyst fueling the market bubble. However, he also stated that "an overbought market may remain overbought, as greed is harder to overcome than fear."
Against the backdrop of continuous new highs in the US stock market, Bank of America (BofA) renowned strategist Michael Hartnett has issued a clear warning: the S&P 500 index is very close to a "sell signal." Once the index rises above 6,300 points—just 0.3% away from last Thursday's closing price—investors should start selling stocks.
Hartnett's core argument is that as summer approaches, the market's "bubble risk" is increasing day by day. He believes that a recently passed $3.4 trillion fiscal plan by the U.S. House of Representatives, which includes tax cuts, is the latest catalyst fueling the market bubble. In a report to clients, he wrote:
"An overbought market may remain overbought, as greed is harder to overcome than fear."
Of course, the strong rebound in the U.S. stock market this time is not without reason. The market was once buoyed by the resilience shown by the U.S. economy and the Trump administration's softened stance on tariffs. This optimism quickly ignited a speculative frenzy in the market, not only rekindling interest in tech giants but also reigniting hype around artificial intelligence (AI).
However, beneath the optimism, risks have not dissipated. Trade issues remain a sword of Damocles hanging over the market. Wall Street Journal mentioned that the Trump administration plans to send letters to trade partners, unilaterally setting tariff rates. The high uncertainty of these trade policies could reverse market sentiment at any time
