Some Wall Street bears predict a short-term market rebound due to oversold conditions.

From Yahoo Finance: 2025-03-21 16:14:00

Wall Street bears are cautiously optimistic about a short-lived rebound in the market. Despite ongoing volatility, some high-profile bears believe the market may be overdue for a bounce, although long-term outlooks remain unchanged. Falling bond yields have spooked investors, but a recession is not imminent. Defensive stocks like utilities and healthcare are recommended.

Chief global strategist Peter Berezin expects the S&P 500 to fall to 4,450 by year’s end, the lowest target among peers. However, he outlined five scenarios that could boost stocks, including a reversal of Trump’s tariff agenda and increased U.S. oil production. Even permabear Albert Edwards noted the potential for a near-term bounce, citing extreme pessimism among investors.

Technical indicators, including the 14-day relative strength index, suggest the market may be oversold and due for a bounce. A recent survey showed nearly 60% of respondents expecting stocks to fall in the next six months. Despite initial losses, U.S. stocks eked out a gain on Friday, breaking a four-week losing streak for the S&P 500 and Nasdaq Composite. The Dow Jones Industrial Average also finished higher after recent losses.

Read more: Even Wall Street’s most committed bears expect a stock-market rebound