U.S. stock market futures gained on Tuesday – after the worst start of a year since 2016 for the S&P 500 – while European benchmarks rebounded, in tentative signs that the rout may be easing. Indications that the Federal Reserve may tighten policy more aggressively than expected triggered a selloff on both sides of the Atlantic, with pricier growth stocks and tech the hardest hit.
Unfazed by the stock market’s bumpy start to the year, strategists from Goldman Sachs Group Inc. to UBS Global Wealth Management reiterated their bullish calls on bets that equities can weather higher interest rates and rising bond yields.
“The selloff in some long duration high quality names might be overdone soon,” Goldman strategists led by Cecilia Mariotti wrote in a note dated Monday. With real yields not expected to move much higher, “valuations are unlikely to become a binding constraint for equities,” the strategists wrote in a note.
