BofA Joins Goldman Sounding Alarm as 70% Bear Signals Flash on S&P 500

Wall Street's two biggest banks are now converging on a cautious outlook for U.S. equities, with Bank of America warning Tuesday that 7 of its 10 bear-market indicators have triggered, urging investors to take profits and shift toward selectivity over broad index exposure. This follows Goldman Sachs flagging Monday that its nine-indicator exuberance framework had reached the 86th percentile, driven by a 13% S&P 500 surge since late March fueled by AI enthusiasm. Markets are already reacting: the S&P 500 dropped 0.92% on June 9th, erasing $620 billion in market value, while the Nasdaq shed 1.13%. BofA maintains a year-end S&P 500 target of 7,100 but flags narrowing breadth, AI capex pressure on margins, and dangerous concentration in large-cap tech as key risks.