From Financial Modeling Prep: 2025-05-07 09:08:00

HSBC warns that recent equity market strength may not be supported by underlying economic factors, despite S&P 500’s nine-day winning streak. The bank attributes tightening U.S. high-yield credit spreads to investor positioning rather than economic resilience.

While sentiment and positioning indicators signal a buy, HSBC notes that many indicators are nearing neutral levels. Concerns arise over forward-looking data, suggesting hard data could worsen in the future. Limited upside catalysts are expected from the Federal Reserve’s upcoming policy meeting.

To assess if recent equity gains align with earnings and macro trends, investors can analyze sector performance using the Sector Historical API. This tool helps track sector-specific fundamentals and identify which parts of the market are leading or lagging the rally.



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