BofA Says Clients Bet on Stock Rally Into Summer Before Pullback

Investors are counting on US stocks to rally on the back of a robust corporate earnings season, before the market loses steam toward year-end, according to Bank of America Corp. strategists.

Client feedback suggests “no one” is worried about the economy or equity valuations, strategist Michael Hartnett wrote in a note. A majority of them expect a forecast-beating second-quarter reporting season and for companies to pledge higher spending on artificial intelligence.

Trading consensus is for more gains in the S&P 500 Index into the Federal Reserve’s annual economic symposium in Jackson Hole in late August, Hartnett said. That is likely ...