Jefferies is bullish on the year-end rally in US stocks: the current pullback may be a rare opportunity to build positions.

BlockBeats news, October 17: Jefferies market intelligence analyst Dan Kirsche said that although tech stocks continue to face pressure, the market rally is broadening to more sectors, and combined with reduced investor positioning pressure and falling U.S. Treasury yields, current market volatility may provide investors with a rare window to build positions, and he expects U.S. stocks to perform strongly in November and December.

Kirsche pointed out that the Nasdaq has pulled back about 5% from its high, while the S&P 500 equal-weight index has rebounded about 7%–8% from its low, showing that weakness in tech stocks has not prevented other sectors from strengthening. However, he expects the S&P 500 may still retest its 100-day moving average at around 7,600 points.

The correction risk in the semiconductor sector has also not been lifted, with the Philadelphia Semiconductor Index falling for an eighth consecutive day, on track for its longest losing streak since May 2006. BTIG analyst Jonathan Krinsky believes that after the Philadelphia Semiconductor Index's consecutive declines, a short-term rebound may occur, but there is still room for further downside in the medium term. Kirsche sees 11,000 points as the index's next important support level, and expects the U.S. 10-year Treasury yield may fall from about 5.13% to 5.00%, then further decline to 4.8%.