Barclays Warns US Stock Market Recovery May Not Be Permanent

Barclays strategist Alexander Altmann warned that the recent recovery in the US stock market may not be permanent. Altmann indicated that a potential weakening in risk appetite could create new selling pressure on crypto assets. He argued that despite the recent bounce in US stocks, there are weak signals within the market's internal structure. Factors such as negative market breadth, limited performance in growth stocks, and the decline in the crypto market were highlighted as risks. Additionally, the sustainability of optimism towards artificial intelligence investments is being questioned. Altmann noted that investors are not adequately pricing in the risks in this area. Barclays also warned that volatility-sensitive investment strategies could deepen the market downturn. According to the institution's models, funds focused on volatility control may have to sell up to $135 billion in US stock futures within 24 to 48 hours following a sharp market jolt. Such mechanical selling is expected to increase pressure on risky asset classes.

This content is provided for general informational purposes only and doesn't constitute financial, investment, legal, or tax advice. Any events, rewards, online promotions, or related information mentioned herein should not be considered a recommendation, solicitation, or invitation to purchase, sell, trade, or otherwise deal in any crypto assets. Crypto assets are highly volatile and may result in loss. The availability of WEEX services, products, and related events may vary by region. You are responsible for ensuring that your participation is in accordance with applicable local laws and regulations.