We're in a 'buffalo' market, Bank of America says. Here's what that means for investors

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The Charging Bull in the Financial District in New York City. After weeks of hitting new highs, the S&P 500 index on Wednesday suffered its worst trading session since 2022. The market broadly began to recover Thursday amid a sell-off in technology stocks. Experts say those stock moves and shuffling sectors are common during a bull market. But Bank of America is calling today's conditions something else — a buffalo market — which is still in the bull family. But unlike the bull market, it may get tired after a strong runup. "It might roam, it might wander in the summer months," said Marci McGregor, head of portfolio strategy at Merrill and Bank of America Private Bank. "But ultimately, what will turn the buffalo back to a proper bull is fundamentals." The firm's outlook sees markets finishing higher this year, based on factors including earnings, the investment cycle, financial conditions, interest rates and generative artificial intelligence. "We think those fundamental ingredients are in place for the uptrend to continue," McGregor said. "But you may get some choppiness."