LONDON (Reuters) – The U.S. benchmark S&P 500 stock index will scale new peaks above 3,000 in the second quarter before topping out, Bank of America Merrill Lynch said on Friday as data showed more cash was pulled from global equities this week.
The bank’s strategists said they expect the U.S. stock market to top out in the current quarter after hitting all-time highs fuelled by gains in banks and oil stocks.
A 3,000 level would mark a 4 percent rise from Thursday’s close. The index touched a record high in September of 2,940.
The forecast was published in the bank’s weekly report on fund flows that showed investors continued to shun U.S. and European equities, pulling $7.7 billion from stocks in the week to April 3 and piled further into bonds adding $11.4 billion (£8.7 billion). The report is based on EPFR data.
(Reporting by Josephine Mason; Editing by Hugh Lawson)