Stocks Are Overdue for a Pullback, Warns BofA’s Subramanian

Watch on YouTube ↗  |  September 17, 2026 at 13:44  |  2:05  |  Bloomberg Markets
Speakers
Savita Subramanian — Head of US Equity & Quantitative Strategy, Bank of America

Summary

Savita Subramanian of BofA Securities explains why she expects a pullback in US equities despite raising her year-end S&P 500 target to 7,400. She cites stretched positioning, seasonally weak September and October, and the absence of a 5%+ pullback over the past six months. She also points to worries about tech/AI, interconnectedness, leverage, and Fed tightening as slowing the economy. She sees a rough patch with only modest 12-month gains rather than a robust market environment.

  • BofA's Savita Subramanian warns US equities are overdue for a pullback.
  • She raised the year-end S&P 500 target to 7,400 due to upside earnings surprise.
  • Positioning has grown through performance, though she does not call it euphoria.
  • September and October are seasonally weak, and no 5%+ pullback has occurred in over six months.
  • She flags tech/AI, interconnectedness, and leverage worries.
  • Fed tightening controls inflation but slows the economy and spending.
  • She expects a rough patch and only modest 12-month gains.
Ideas
Savita Subramanian Head of US Equity & Quantitative Strategy, Bank of America 0:00
S&P 500 due for pullback.
Subramanian sees US equities as due for a pullback after no 5%+ drawdown in over six months, with equity allocations having grown through performance, September and October seasonally weak, and worries surfacing around tech, AI, interconnectedness, leverage, and Fed tightening that slows the economy and spending. She raised the year-end S&P 500 target to 7,400 only because earnings surprised to the upside, but still says the market is in a rough patch and not a robust environment, with only one or two percentage points of gains possible over the next twelve months.
SPY HIGH
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This Bloomberg Markets video, published September 17, 2026, features Savita Subramanian discussing SPY. 1 trade idea extracted by AI with direction and confidence scoring.

Speakers: Savita Subramanian  · Tickers: SPY