Bank of America Global Research issued a warning that the S&P 500 is 'priced for perfection,' noting that 18 out of 20 valuation metrics are currently expensive.

  • The firm forecasts only a modest 4-5% upside, setting a year-end target of 7,100.
  • Analysts predict high volatility and a rotation toward undervalued sectors like Health Care and Consumer Staples, citing AI capital expenditure as a potential headwind for buybacks.
  • BAC stock rose 1.56% to $56.83, moving in tandem with a strong financial sector performance.