With the easing of geopolitical tensions powering the S&P and Nasdaq to new all-time highs last week, BofA's Global volatility research team notes that April’s tariff turmoil feels like a distant memory and the “end of US exceptionalism” narrative that kept a lid on US equities appears to have faded (though it has not completely dissipated).
The retracement in US equities from April lows has been historic, with the Nasdaq having experienced its 5th fastest retracement from a 15%+ drawdown ever, in the rare air occupied by rallies during the late 90s tech bubble.
