Citadel Warns 16% S&P 500 Rally Faces Fund-Flow Unwind Risk

1 articles · Updated · Bloomberg · May 18

Scott Rubner said the fund flows that helped drive US stocks to record highs in recent weeks are increasingly at risk of reversing.
About 16% off its March low, the S&P 500 has been lifted by strong earnings, corporate buybacks and heavy retail buying.
Rubner said that support now looks frothier as bond yields rise, even though underlying corporate fundamentals remain strong.
The warning suggests the market’s next vulnerability may come less from earnings weakness than from a pullback in the flows that powered the rebound.

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