Bank of America warned on June 5 that there are “too many red flags” flying over U.S. stocks and that traders should take profits, CNBC reported.
The bank tracked 10 bear market signals and saw seven signals triggering in May, five in April and four in March. Seven is the average number of signals reached before previous bear markets since 1990, Bank of America strategist Savita Subramanian wrote to her clients.
“We see opportunity in S&P 500 stocks, but not in the broader cap-weighted index.”
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The latest signs of turning red are the spread between the best and worst performers in the S&P technology sector, the bank warned. The gap between the median stocks in the best- and worst-performing tech quintiles is 120 percentage points, the widest since February 2000, which was the peak of the Internet boom.
Subramanian warned that the spread “rivals the dot-com bubble” and added that it reached 130 points just before the market peak on March 24, 2000.
The S&P 500 is a stock index that tracks the performance of 500 of the largest publicly traded companies in the US and covers around 80% of the total US market capitalization.
The index reached 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:
Crypto Stocks Linked to S&P 500 in 2026
Coinbase Global (Nasdaq: COIN) is the leading cryptocurrency trading exchange in the US. Its shares joined the S&P 500 index in May 2025, becoming the first cryptocurrency company to join the benchmark index.
The stock has fallen more than 30% this year and was trading at $154.30 at the time of this publication.
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.
HOOD shares have lost more than 25% of their value this year and were trading at $82.15.
Block, Inc. (NYSE: XYZ) is a Bitcoin-focused financial technology company co-founded by Twitter founder Jack Dorsey. Its shares joined the S&P 500 index in July 2025.
Although the stock is up 3% this year, it is down 10% in the last month and was trading at $67.22.
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This story was originally published by TheStreet on June 10, 2026, where it first appeared in the MARKETS section. Add TheStreet as a preferred source by clicking here.