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

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.