Truist CIO Highlights S&P 500 18% Rally and Only One 5% Pullback
Truist CIO Keith Lerner noted the S&P 500 has had one 5% pullback in 2026 versus three in 2025 and has gained 18% from its March 30 lows with technology up 36%. Historical data shows markets rise 93% of the time over 12 months following 15% gains in 30 days.
1. Market Resilience in 2026
Truist CIO Keith Lerner observed that the S&P 500 has experienced only one pullback of 5% or more this year compared with three such declines in 2025, underscoring unusually low volatility in a seasonally active period.
2. Strong Sector Performance
Following the late-winter correction that bottomed on March 30, the benchmark index has climbed 18%, with the technology sector contributing a 36% advance as investor optimism around AI spending intensified.
3. Historical Outlook and Strategy
Lerner’s analysis since 1950 shows that after 15% gains over a 30-trading-day span, the S&P 500 has risen 93% of the time over the following 12 months, suggesting favorable long-term momentum.
4. Implications for Investors
While the bull market remains intact, Lerner recommends preparing for a consolidation phase to align valuations with fundamentals, viewing deeper pullbacks as strategic buying opportunities amid evolving geopolitical and Fed dynamics.