UBS: The pullback in US stocks is in place, and a rebound is expected by the end of the year.

On November 25, UBS's securities trading department stated that the selling in the U.S. stock market may have come to an end, laying the groundwork for a year-end Rebound. Last week, the stock market suffered a significant decline as investors questioned the prospect of further easing policies from the Fed and withdrew from crowded AI trades. The S&P 500 and Nasdaq 100 indexes fell approximately 4% and 7%, respectively, from their historical highs at the end of October, both dropping near the 100-day moving average. However, UBS believes that as the Benchmark index finds support at this critical technical level, systematic fund dumping has largely calmed, and the Fed's interest rate cut expectations seem to be back on track for next month, the stock market is expected to strengthen in the future. “Our view is that the current de-risking phase has come to an end,” wrote Michael Romano, head of equity derivatives hedge fund sales at UBS, in a report released last Sunday. Romano expects the S&P 500 to rise to around 7000 points by year-end, believing that the market Whipsaw in November has sufficiently reset Positions, creating conditions for the subsequent rise. This strategist predicts that the recent pullback may have led the market into a special December—momentum stocks are expected to perform strongly (such stocks typically experience rapid and significant price fluctuations). (Jin10)