Mounting Risks for S&P 500 Are Under the Surface, BofA Analysts Say
- Liquidity on S&P 500 futures near record lows of 2020 selloff
- Fed less likely to rescue stocks as more focused on inflation
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More risks may be building for U.S. equities than meets the eye, Bank of America Corp. analysts said.
This year’s extreme intraday market swings and fluctuations in single stocks’ value show there’s “turbulence” under the surface, equity derivatives analysts led by Gonzalo Asis said in a note on Tuesday. These gyrations have been exacerbated by the collapse in liquidity levels for S&P 500 e-mini futures to near all-time lows last seen during the 2020 Covid selloff.