Bank of America: The recent sell-off has not hurt the "vital point" of U.S. stocks

Golden Finance reported that, according to Michael Hartnett, Chief Strategist of Bank of America, the turmoil in the global financial markets has not yet reached the level of causing concerns about a hard landing for the economy. The S&P 500 index (SPX) has fallen by about 6% since reaching a historic high in mid-July, and the benchmark stock index is still above the 200-day moving average (MA) of around 5050 points, while the U.S. 30-year Treasury yield has not fallen below 4%. Michael Hartnett wrote in a memo, “The technical level that can shift the Wall Street narrative from a soft landing to a hard landing has not been broken. Despite investors’ ‘exhaustion,’ the expectation of a Fed rate cut suggests that the preference for stocks over bonds has not ended due to the market big dump.”