The stock market is about to suffer a ‘snapback’ and will lose much of this year’s gains as ‘speculation is hitting extreme levels,’ BofA warns

Bank of America warns the stock market may experience a 'snapback' due to extreme speculation, with the S&P 500 potentially dropping 5% from current levels by year-end. The bank cites declining free cash flow for S&P 500 companies, especially AI-driven firms, and predicts aggressive Federal Reserve rate hikes to combat inflation. Market volatility, seen in the S&P 500 and South Korea’s Kospi index, raises concerns about unsustainable gains.