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Bank of America sees changes in investor attitudes towards US stocks

Schedule S&P 500 at intervals of 1 week

“Rising optimism” in US stock sentiment has paused, Bank of America reported, noting that weekly customer net sales last week were the fifth-highest since 2008, at $ 5.2 billion, the highest since November.

Jill Carey Hall and other BofA strategists have noted that in the past, when the weekly investment was at this level or more negative, the average / median return for the following week was -1%.

Customers have sold cyclical stocks and bought defensive stocks, passive investors are still more cyclical-oriented, albeit more moderately. Last week, retail clients were buyers only, while institutional investors and hedge fund clients were sellers.

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Shares in the United States on Tuesday, April 20, fell markedly again as the so-called fear index jumped over fears that a global surge in COVID-19 cases would lead to renewed lockdowns.

The Dow Jones Industrial Average fell 0.8% to 33,821.30, the S&P 500 fell 0.7% to 4,134.94, and the Nasdaq Composite closed 0.9% lower at 13,786.27.

The VIX Volatility Index, an indicator of the expected volatility of the S&P 500 stocks sometimes called the Fear Index, rose 11% to its highest level in April, while the 10-year US Treasury yield fell 4 basis points to 1.56. %.

The US State Department has warned that the COVID-19 pandemic continues to pose “unprecedented risks” around the world and has urged Americans to stay at home. The updated travel rules advise citizens to avoid visiting “80% of countries.”

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India has been added to the red list of countries, of which most travel to the UK has been banned due to concerns over a new strain of the COVID virus, which has led to a sharp increase in confirmed cases, reduced hospital capacity and blockages in many parts of the country.

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