S&P 500 selloff is a buying opportunity: Evercore ISI By

-- According to Evercore ISI analysts in a note to clients on Which MT4 account is goodMonday, the recent selloff in the presents a buying opportunity despite ongoing market volatility.

The firm says investors have been jittery since Nvidia (NASDAQ:)'s earnings report, questioning the magnitude of the AI opportunity, but Evercore analysts believe there's no sign of a bubble like the one seen during the Y2K era.

They argue that the market remains on track for significant growth, projecting the S&P 500 to hit 6,000 by the end of 2024.

"Ongoing volatility post NVDA's EPS presents buying opportunities as signs of a bubble inducing a Y2K-like AI implosion remain absent," writes Evercore.

The firm adds that while AI adoption may take time—just as the internet did during its early years—its expanding scope is expected to drive productivity and long-term market gains.

"AI air pockets are common in structural bull markets," the analysts noted, adding that even with elevated valuations, the lack of a bubble lowers the risk of a collapse.

The firm also highlights broadening upside participation across multiple sectors and improved earnings, with Q2 2024 results showing upward revisions and accelerating growth.

Evercore ISI advises investors to focus on a "barbell" strategy, favoring tech and communication services, along with small caps, while balancing with defensive sectors like healthcare and consumer staples.

Additionally, Evercore ISI points out that buyback stocks have consistently outperformed during Fed rate cut cycles, providing an attractive investment option.

They also recommend managing volatility with strategies such as QQQ strangles, while highlighting that political uncertainty and upcoming events like the CPI report will continue to drive short-term fluctuations.

Overall, Evercore sees the recent dip as a tactical opportunity for investors, with favorable long-term prospects despite the market's current unease.

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