Market May Face Profit-Taking in Early June, Says Bank of America Strategist

Bank of America's Chief Investment Strategist, Michael Hartnett, has indicated that the market may experience a round of profit-taking in early June due to investors' excessive influx into the stock market and rising inflation risks. According to Jin10, Hartnett's team highlighted in their report that as the stock market continues to reach new historical highs, price pressures are broadly spreading across the U.S. economy, with increases in energy, transportation costs, and rent. They also noted that a series of key events next month could heighten market caution, including the next OPEC meeting, the opening of the World Cup, the G7 summit, and the first Federal Reserve FOMC meeting under Kevin Warsh's tenure, all of which could act as triggers. Hartnett stated, 'The behavior of funds chasing stocks and tech stocks may largely conclude in the coming weeks, making early June an opportune time for partial profit-taking.'