US equities may keep setting records, but Wall Street analysts are pulling back.
Analysts are downgrading S&P 500 constituents, and JEFFERIES data show the
proportion of 'buy' ratings in the broader Russell 3000 has fallen to roughly
four-year lows, well below dot‑com era peaks. The shift in analyst stance is
being treated as constructive for the rally because it suggests market sentiment
has not yet reached the extreme euphoria that typically signals a top. "I
typically look at market sentiment by whether there are more new buyers or
sellers. The sell side has not yet shown signs of buying," said Andrew
Greenbain, senior vice president for equity research product management at
JEFFERIES.
