Bank of America Says S&P 500 Nears Sell Signal Above 6300 Points

The S&P 500 has reached record highs but is now nearing a critical sell signal, with Bank of America strategist Michael Hartnett advising investors to consider selling if the index surpasses 6,300 points, just 0.3% above its recent close. Hartnett warns that bubble risks are mounting, especially following the House of Representatives' approval of a $3.04 to $3.4 trillion tax-cutting fiscal package, which has fueled speculative market behavior. The US economy's strong performance, supported by President Donald Trump's tariff policy easing, has driven renewed enthusiasm for technology stocks and artificial intelligence sectors. Nonetheless, trade tensions persist as the Trump administration plans to send letters to trading partners to establish unilateral tariff rates. Additionally, the US dollar has experienced a historic decline in 2025, falling over 10%, amid increased volatility and reassessment of US assets due to unpredictable policy shifts. Market experts suggest that political instability worldwide is contributing to this volatility, with investors facing challenges balancing growth prospects against rising fears of a market bubble.