BofA Sees New Lows for US Stocks as Inflation Shock ‘Ain’t Over’

US stocks haven’t seen the worst of this year’s declines yet against the backdrop of scorching inflation and a hawkish Federal Reserve, according to Bank of America Corp. strategists.

The “inflation shock ain’t over” and an earnings recession will likely drive stocks to news lows, strategist Michael Hartnett said in a note. Although the bank said US equity funds posted their biggest inflows in more than a month in the week to Sept. 14, stock markets have been under pressure again since Tuesday after a hotter-than-expected consumer price report fueled the S&P 500’s biggest one-day drop since June 2020.