Investor sentiment toward U.S. stocks has sharply declined, with Bank of America’s March survey showing a record 40% drop in equity allocations. The S&P 500’s 10% pullback led investors to shift funds into cash rather than bonds.
Concerns over a trade war triggering a global recession remain the top market risk. While some expect a short-term rally, analysts caution that sustained gains depend on resolving economic headwinds or Federal Reserve rate cuts. Investors are closely watching the Fed’s policy decision on Wednesday for signals on future interest rate adjustments.
