Stocks Surge Amid Tariff Tensions: Is a Sell-Off Looming?

Hang onto your hats, folks! Despite fresh tariff concerns sending jitters through the markets, global stocks are pushing higher. But hold up—Bank of America's top strategist, Michael Hartnett, is sounding the alarm. He's warning that if the S&P 500 rockets past 6,300, it might just trigger a massive "sell signal."

Get this: Bank of America's research team is spilling the beans that investors have been dumping big bucks into cash and bonds lately, even as stocks are hitting the roof with record highs. It's like everyone's playing it safe while the market's on fire!

The Dow Jones and Nasdaq are creeping up, soaking in the good vibes from easing Middle East tensions and some solid macroeconomic tailwinds. It's like the perfect storm for a bullish market!

Fresh Trade War Risks

The S&P 500's been on a wild ride these past few weeks, smashing through new highs and closing at a whopping 6,279.35 on Thursday. And before markets shut down for the July 4th bash, U.S. indices were charging ahead, fueled by some stellar payrolls data.

But listen up—analysts are throwing up caution flags. They're saying this upward frenzy might just keep rolling into next week, but if it does, the S&P 500 could be teetering on the brink of a sell signal.

And guess what? President Trump's latest tariff talk is bringing those pesky trade war fears back into the spotlight. With the 90-day tariff pause almost up, some investors are getting real antsy.

Hartnett's calling it: if this bullish party keeps going and the S&P 500 blasts past 6,300, we could be in for some serious selling action real soon.

But that's not all. BoFA strategists are saying bubble risks are ballooning, especially after Congress gave the green light to Trump's 'One Big Beautiful Bill'—a monster $3.4 trillion policy and tax package. Talk about fueling the fire!

S&P 500 Near "Bubble or Burst" Scenario

Hold onto your seats, because Bank of America's researchers are calling it: we're cruising towards a "bubble or bust" showdown. They're betting the S&P 500 could soar to 7,000 this summer, but they're not ruling out a crash landing at 5,000 either.

Hartnett's dropping wisdom bombs, saying, "Overbought markets can stay overbought as greed is harder to conquer than fear." It's like he's reading the market's mind!

And check this out: last week, investors shoved more than $56 billion into money market funds, while bonds sucked up over $20 billion through July 2. Meanwhile, equities pulled in $2.2 billion, gold grabbed $1.4 billion, and cryptocurrency funds? They're raking in over $1 billion as Bitcoin flirted with $110,000 before dipping below that magic number.