Bank of America: Recent sell-off has not yet hurt the "vital points" of U.S. stocks

Global financial market volatility has not yet reached a level that would cause concerns about an economic hard landing, as stated by Michael Hartnett, Chief Strategist at Bank of America. Since hitting a historic high in mid-July, the SP 500 Index (SPX) has fallen by about 6%, but the benchmark stock index remains above the 200-day moving average of around 5050 points, and the US 30-year bond yield has not fallen below 4%. In a memo, Michael Hartnett wrote, "The technical level that would allow Wall Street's narrative to shift from a soft landing to a hard landing has not been broken. Although investor feedback is 'exhausted', expectations of a Fed rate cut mean that the preference for stocks over bonds has not ended due to market turmoil."