Bank of America offers blunt advice to U.S. stock traders

The Bank of America warned on June 5 that there are “too many red flags” waving over U.S. stocks and traders should take profits, CNBC reported.

The bank tracked 10 bear market signposts and saw seven signposts triggering in May, five in April, and four in March. Seven is the average number of signposts reached ahead of previous bear markets since 1990, Bank of America strategist Savita Subramanian wrote to clients.

“We see opportunity in S&P 500 stocks, but not the overall cap-weighted index.”

Related: BlackRock issues blunt warning for major energy shock

The latest signs to turn red are the spread between the best and worst performers in the S&P’s tech sector, the bank warned. The gap between the best and worst performing tech quintiles’ median stock is 120 percentage points, the highest since February 2000, which was the peak of the internet boom.

Subramanian warned that the spread “rivals the dotcom bubble” and added it hit 130 points just before the market peak of March 24, 2000.

The S&P 500 is a stock market index that tracks the performance of 500 of the largest publicly traded companies in the U.S. and covers around 80% of the total U.S. stock market capitalization.

The index hit the all-time high (ATH) of 7,620.90 points on June 2 and was at 7,339.16 points at press time.

More News:

S&P 500-tied crypto stocks in 2026

Coinbase Global (Nasdaq: COIN) is the leading crypto trading exchange in the U.S. Its stock joined the S&P 500 index in May 2025, becoming the first crypto company to join the benchmark.

The stock has fallen more than 30% this year and was trading at $154.30 at press time.

Robinhood Markets (Nasdaq: HOOD) is an e-trading broker that has become popular among retail traders due to its commission-free offerings of stocks, cryptocurrencies, and tokenized stocks.

The HOOD stock has lost more than 25% of its value this year and was trading at $82.15.

Block, Inc. (NYSE: XYZ) is a Bitcoin-focused fintech firm co-founded by Twitter founder Jack Dorsey. Its stock joined the S&P 500 index in July 2025.

Though the stock is up 3% this year, it has declined 10% in the last month and was trading at $67.22.

Related: Mysterious trader buys millions ahead of White House meet on June 10

This story was originally published by TheStreet on Jun 10, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.