Bank of America and Citi do not agree on the direction of the Variable Income Market

• The US shares indices operate moderately upwards on Monday.
• Citi and Bofa see the market differently when entering the summer months.
• The Trump administration is immersed in commercial conversations in London with China.
• Nvidia and Boeing shares go up while the market awaits trade negotiations between the US and China.

While investors expect details of the commercial conversations that take place in London between the US and China this week, the US stock market shows moderate optimism on Monday, since the indexes advance up to start the week. At the time of writing, the Dow Jones industrial average (DJIA) is quoted with marginal losses, while the S&P 500 and the Nasdaq Composite are operating between 10 and 50 basic points on the rise.

The president of the US, Donald Trump, has sent the US trade representative, Jamieson Greer, the Secretary of the Treasury, Scott Besent, and the Secretary of Commerce, Howard Lutnick to London to handle negotiations, and the first reports indicate that the US has the intention of making China relax their restrictions on the export of rare land minerals, while that China seeks to force the US government to relax its restrictions on the export of semiconductor components.

That last reason helped NVIDIA (NVDA) To advance more than 2% in the morning session on Monday before reducing to a gain of less than 1% in the afternoon. However, Trump’s National Economic Council director Kevin Hasett said that restrictions on Nvidia’s main chips would not be open to discussion.

Boeing’s actions (BA) lead the Dow Jones on Monday. The first 737 Max was delivered to China early on Monday after the company stopped deliveries in April after Trump’s commercial war with the Asian nation. BA actions have risen 3.8% at the time of writing.

The dry load maritime freight index of the Baltic Stock Exchange reached its highest level in almost seven months as global trade returns to normal after the Trump April and May tariff. Importers in the US also know that as of July 9, tariffs in the US could increase again if countries fail to establish trade agreements with the Trump administration.

Bofa and Citi see summer negotiations in a different way

Bank of America (Bofa) and Citi seem to be moving in different directions when judging the second half of the year. Citi analysts issued a 6,300 projection for S&P 500 at the end of the year, which would mean a gain of approximately 5% from here. By raising its gains objective for the index, the CITI clients note hopes that the index will rise to 6,500 in mid -2026.

Citi also raised its profit objective for the index of $ 255 to $ 261, although the figure is still below the $ 264 consensus, due to its upward perspective on the large capitalizations of the USA specifically, CITI analysts believe that the shares of the “7 magnificent” 7 They will impress in the second half of the year.

While they recognize that the S&P 500 is historically expensive, analysts assume that the index may maintain an advance of 21.

For its part, Bank of America is informing its clients that it is a good time to cover their portfolios, since several graphic indicators offer possible bassist reversions. Paul Ciana, a Bofa technical strategist, says that Nasdaq 100 (NDX) is approaching its historical maximum of 22,222, which should offer resistance, as well as the dry TD indicator that shows two signs of trend exhaustion.

DAILY GRAPH OF THE NDX INDEX

In addition, the daily graph shows that the relative force index (RSI) moves down despite the increasing price action of the NDX. This is called the divergence of the RSI and typically suggests an upcoming bearish reversal.