BofA Cuts US Stock Index Target

Bank of America Merrill Lynch reduced its year-end target for the S&P 500 on Tuesday, blaming the August stock market correction fueled by China’s troubles.

In a note to clients, BofA equity strategist Savita Subramanian highlighted a shift in sentiment from the investment banks’ quantitative models to neutral from positive on U.S. stocks.

To reflect these changes, Subramanian now expects the S&P to end this year at 2,100, implying an upside move of 7.7 percent from here compared to 13 percent previously, based on an estimate of 2,200.

“The worst is probably behind us, but the road is still bumpy,” said Subramanian, explaining that the market appears to be in a “data-dependent mode,” which will lead the S&P to continue to struggle until signs of stabilization arise from emerging markets in particular.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza