US stock market headwinds from macro hedge funds offloading longs ...Middle East

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US stock market headwinds from macro hedge funds offloading longs
Nomura with a wary note on US equities. Analysts at the bank said a strong September jobs report last Friday highlighted the resilience of the U.S. economy, raising hopes for a smooth economic transition and driving stock prices higher.However, Nomura warns that U.S. stocks may face challenges in continuing their upward trend. US equities could struggle to gain significantly as long as macro hedge funds keep reducing their net long positions in US stocks. Nomura also mentioned that a sharp decrease in market volatility is unlikely, at least until after the US presidential election, which could limit the contribution of volatility control strategies to increasing long positions.***Earlier:JP

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