U.S. stocks decline raises concerns; Truist: Technical indicators suggest large-cap stocks are nearing a rebound

Investment bank Truist stated that U.S. large-cap stocks are nearing a rebound, despite recent underperformance due to economic concerns triggered by trade policies. The S&P 500 has fallen into correction territory, and Truist believes that the stock market's downward momentum is weakening, with technical indicators suggesting an increased likelihood of a rebound. The relative strength index has fallen below oversold levels, and historical data shows that the stock market typically rises after similar situations. Although valuations remain expensive, the forward price-to-earnings ratio of the S&P 500 has significantly declined, indicating that the market is approaching a stable level