The stock market appears to be in the middle of a reset, but Bank of America feels investors shouldn\u2019t expect a major rebound just yet.<\/p>\n
BofA\u2019s chief investment strategist, Michael Hartnett, argues that the conditions that usually signal the end of a brutal market correction are only partially in place, per reporting from Seeking Alpha.<\/p>\n
Hartnett said the current turbulence in the stock market follows a familiar pattern, where we\u2019re seeing corrections led by \u201cexogenous shocks at a time of excess bullishness.\u201d<\/p>\n
In other words, markets became incredibly optimistic, only for external events such as the Iran war to rattle investor sentiment, triggering a broad reset.<\/p>\n
Here\u2019s how the major stock indices have fared over the past week.<\/p>\n
S&P 500<\/a>:6,878.88 to 6,740.02, down about 2.0%<\/p>\n Dow Jones Industrial Average:48,977.92 to\u00a0 47,501.55, down about 3%<\/p>\n Nasdaq Composite: 22,668.21 to 22,387.68, down about 1.2%. The S&P 500 was last trading at 6,740.02 on Friday, March 6, 2026, according to the Associated Press<\/a>, down roughly 1.5% year to date.<\/p>\n For perspective, when I last covered<\/a> the S&P 500 on March 2, 2026, it closed at 6,881.62; since then, it has fallen 141.60 points, or about 2.1%.<\/p>\n The primary focus on that piece covering Morgan Stanley’s Mike Wilson was \u201cdispersion,\u201d the idea that the S&P 500 can appear stable even as many of the stocks beneath the surface have crashed.<\/p>\n That said, it overlaps with Hartnett\u2019s point that the market\u2019s fundamentals<\/a>are undergoing a reset.<\/p>\n Harnett believes a few critical pieces of the reset are now being seen in the current price action.<\/p>\n However, the final piece of the puzzle still hasn\u2019t appeared.<\/p>\n From a historical standpoint, these resets tend to end after safe-haven assets such as oil and the U.S. dollar weaken, but he says the markets have yet to see it come to fruition.<\/p>\n Until that happens, Hartnett argues that investors shouldn\u2019t expect \u201cbig trading upside.\u201d<\/p>\n 2020: 3,756.07 year-end close; up 16.3% for the year versus 3,230.78 at the end of 2019<\/p>\n 2021: 4,766.18 year-end close; up 26.9% for the year<\/p>\n 2022: 3,839.50 year-end close; down 19.4% for the year<\/p>\n 2023: 4,769.83 year-end close; up 24.2% for the year<\/p>\n 2024: 5,881.63 year-end close; up 23.3% for the year<\/p>\n 2025: 6,845.50 year-end close; up 16.4% for the year Hartnett\u2019s thesis on the stock market hinges on a market rotation that develops during corrections.<\/p>\n That\u2019s usually when money flows away from crowded winners and toward assets that have absorbed the bulk of the damage.<\/p>\n He argues that the heavily sold areas of the stock market are already bottoming out.\u00a0It points to a part of the tech space and risk-heavy assets that experienced major drawdowns in recent months.<\/p>\n Related: Morgan Stanley delivers curt 2-word verdict on S&P 500<\/a><\/p>\n \u201cThe first condition is when the \u2018oversold\u2019 assets trough,\u201d Hartnett wrote, laying out the case that the process might have already been underway across software stocks, large-cap tech giants, and the \u201cMagnificent 7,\u201d along with areas like private credit, bank loans, and even bitcoin.<\/p>\n So the areas of the market that were out of favor have already taken the majority of their licks.<\/p>\n At the same time, we\u2019re seeing a completely opposite dynamic start to play out elsewhere.<\/p>\n Assets that investors were flocking toward in droves during the recent rally are seeing investors step back.<\/p>\n Hartnett underscored the recent selling pressure across gold and chip stocks, along with emerging-market, European, and banking stocks, reflecting a broader rebalancing across portfolios after the recent bout of choppiness.<\/p>\n \u201cThe second condition is met when the \u2018overbought\u2019 assets sell,\u201d Hartnett explained.<\/p>\n Put simply, he argues that capital continues rotating across asset classes with investors unwinding positions that became stretched during the previous rally.<\/p>\n SPDR Gold Shares ETF (GLD<\/a>): down nearly 2.1% VanEck Semiconductor ETF (SMH<\/a>): down about 6.4% iShares MSCI Emerging Markets ETF (EEM<\/a>): down about 8.4% Vanguard FTSE Europe ETF (VGK<\/a>): down about 6.3% SPDR S&P Bank ETF (KBE<\/a>): down about 2.5% Related: Morgan Stanley drops blunt reality check on gold price surge<\/a><\/p>\n This story was originally published by TheStreet<\/a> on Mar 9, 2026, where it first appeared in the Investing<\/a> section. Add TheStreet as a Preferred Source by clicking here.<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"The stock market appears to be in the middle of a reset, but Bank of America feels investors…\n","protected":false},"author":2,"featured_media":512905,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27],"tags":[14736,28,90154,101885,232490,1169],"class_list":["post-512904","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-bank-of-america","tag-business","tag-market-correction","tag-michael-hartnett","tag-stock-indices","tag-stock-market"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/512904","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/comments?post=512904"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/posts\/512904\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media\/512905"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/media?parent=512904"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/categories?post=512904"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us\/wp-json\/wp\/v2\/tags?post=512904"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
Source: Reuters<\/p>\n
Source: S&P 500 closing levels via FRED\/S&P Dow Jones Indices and YCharts historical data<\/p>\n
The SPDR Gold Shares ETF, tracking the price of the shiny yellow metal, dropped from around $483.75 on Feb. 27 to $473.51 on Mar. 6, a decline of nearly 2.12%.<\/p>\n
The VanEck Semiconductor ETF, which gauges the chip space, dropped from $406.37 on Feb. 27 to $380.56 on Mar. 6, a decline of nearly 6.35%.<\/p>\n
The iShares MSCI Emerging Markets ETF, which tracks stocks across major emerging economies, slid from $62.58 on Feb. 27 to $57.32 on Mar. 6, a drop of about 8.41%.<\/p>\n
The Vanguard FTSE Europe ETF moved from $90.17 on Feb. 27 to $84.46 on Mar. 6, a drop of roughly 6.33%.<\/p>\n
The SPDR S&P Bank ETF, tracking a basket of major U.S. banking stocks, declined from $61.05 on Feb. 27 to $59.55 on Mar. 6, a weekly drop of approximately 2.46%.
Source: Yahoo Finance<\/p>\n