Experts Predict Big Stock Market Rally Followed by Potential Collapse

Bank of America strategist Michael Hartnett warns that the current stock market rally driven by artificial intelligence plays feels more like the run-up to recent collapses than the start of a new bull market. He sees a maximum upside for the S&P 500 of 100 to 150 points versus 300 points downside between now and Labor Day in September. Hartnett argues that stocks can remain elevated until the Fed reintroduces fear by communicating the fed-funds rate needs to go to 6% to crack embedded inflation, long-term Treasury yields top 4%, and the U.S. unemployment rate rises above 4%, signaling recession.