BofA stays bearish on S&P 500, says take profits in growth and rotate into large-cap value

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BofA says equity hedging may explain JPY weakness, sees risk-reward favouring long JPY

Newsquawk Daily US Opening News - 30th June 2026

BofA stays bearish on S&P 500, says take profits in growth and rotate into large-cap value

Japan and India are considering a local-currency settlement scheme, bypassing the USD, Nikkei reports citing sources

UK Government announces a GBP 15bln defence package

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  • BofA keeps its 2026 year-end S&P 500 target at 7,100, arguing the bullish liquidity, buyback and fund-flow supports that peaked in 2025 are now reversing.
  • The bank says investors should favour large-cap value and cyclicals, particularly Financials, Energy and Materials, as AI capex, manufacturing activity, benign credit spreads and lower oil support cash-generative “old economy” sectors.
  • BofA sees weaker risk/reward in secular growth and hyperscalers, noting AI spending limits capex flexibility, buybacks are constrained by weaker cash flow, and investors are paying near-record premia for long-term growth.

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