Wall Street Analysts Grow Skeptical After Two-Month Stock Market Rally

BlockBeats News, June 2nd. While the U.S. stock market may continue to hit record highs, Wall Street analysts responsible for tracking these markets are not eager to keep up with their upward momentum. Researchers are downgrading ratings of S&P 500 index component companies.

JPMorgan data shows that in the broader Russell 3000 index, the proportion of component stocks rated as "buy" is nearly the same as four years ago, much lower than the peak level during the dot-com bubble. Whatever the exact reasons behind this new skeptical attitude, it is seen as a positive development. Looking at the issue from a contrarian perspective, this means that market sentiment has not reached the extremely bullish state typically seen at a market top.

Andrew Greenbain, Senior Vice President of Stock Research Product Management at JPMorgan, said: "I usually consider market sentiment from the perspective of 'are there more buyers or sellers.' Currently, the selling side has not shown signs of buying." (Golden Finance)