UBS’ Romano Says Rotation Out of US Stocks Is Likely Done

The selloff in US stocks may have run its course, setting the stage for a year-end rally, according to UBS Securities’ trading desk.

Stocks slumped last week as investors questioned the prospect of further Federal Reserve policy easing and rotated out of the crowded AI trade. The S&P 500 Index and Nasdaq 100 are down around 4% and 7%, respectively, from their late-October record highs, with both indexes sliding to their 100-day moving averages.