Bank of America: The stock market rebound triggered by the US trade agreement will fade away

According to a report by Golden Finance, Michael Hartnett, a strategist at Bank of America, said that although the United States is taking measures to negotiate trade, the surprising rebound in the US stock market may have come to an end. The strategist stated that due to optimism about reducing tariffs in the second quarter, the stock market has "reasonably" rebounded. However, he believes that the stock market will not further rise because investors "buy on expectations and sell on facts". Since Trump announced the temporary suspension of some tariffs on April 9th, the S&P 500 index has risen by 14%, but it is still down 3.7% this year, lagging behind the international market. Hartnett suggests that the target for 2025 is bonds, not stocks. In terms of stocks, he prefers international assets over American assets. He stated in the report that compared to non US stock markets, the US stock market is in the later stage of a structural bear market. The flow of funds supports Hartnett's viewpoint. According to a report by Bank of America citing EPFR Global data, approximately $24.8 billion has been redeemed from the US stock market in the past four weeks, the highest level in two years.