BofA stays bearish on S&P 500, says take profits in growth and rotate into large-cap value
Newsquawk Staff ·
- 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.
- Saudi Arabia's Eastern Province was reportedly targeted by four drones, Naya for Iraq reports
- Explosions were reportedly heard in Iran's port city of Sirik, with claims that US forces struck an anti-ship missile launcher targeting vessels in the Strait of Hormuz, Israel's Channel 12 reports
- US military is reducing troop presence at bases across the Middle East, while the State Department is ordering further staff reductions at diplomatic posts amid regional threats and potential US military action against Iran, NBC News reports
- Iran threatens to target US political figures if strikes resume, Fars News reports
- Kinder Morgan Inc (KMI) Q3 2026 (USD): Adj. EPS 0.35 (exp. 0.32), Revenue 4.531bln (exp. 4.38bln)
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