UBS's securities trading department states that the rotation of capital outflows from US stocks may have come to a pause.

According to Jinse Finance, UBS's trading department believes that the decline in the U.S. stock market may have come to an end, laying the groundwork for a year-end Rebound. Last week, the stock market experienced a big dump as investors wavered in their expectations for further easing by the Fed and exited crowded AI trades. The S&P 500 and Nasdaq 100 indices fell about 4% and 7% respectively from their record highs set in late October, with both dropping to their 100-day moving averages. However, with the benchmark indices finding support at this critical technical level, systematic fund dumping has largely subsided, and market expectations for a rate cut by the Fed next month seem to be back on track. UBS believes there is still room for rise in the stock market. Michael Romano, head of equity derivation hedging fund sales at UBS, wrote in a report released on Sunday, “We believe the current risk-averse phase has come to an end.”