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Stock Bounce Call ‘Proved Wrong,’ Cantor Strategist Concedes

  • Strategist cites earnings showing consumers are cutting back
  • Reversal comes with S&P 500 poised for a new low for 2022
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Retailers Lead the Selloff on Wall Street

So violent have the selloffs in US equities become, a Cantor Fitzgerald equities handicapper has pulled his prediction from just two weeks ago that stocks were poised for a rebound.

The S&P 500 plunged more than 4% Wednesday, headed for the biggest rout in almost two years, after consumer stalwarts from Target Corp. to Walmart Inc. reported shrinking profit margins. The index fell to 3,917, down from roughly 4,100 when Eric Johnston, head of equity derivatives and cross asset at Cantor, predicted on May 2 US stocks were poised for a short-term bounce.