WELLS FARGO WARNS OF NARROW S&P 500 RALLY Wells Fargo analysts warned Thursday that the recent S&P 500 rebound may be fragile due to narrow rally breadth. Fewer than 50% of stocks are above their 200-day moving average, and only 56% are above their 20-day MA—suggesting limited participation. Despite this, Wells Fargo remains cautiously optimistic, advising investors to use market pullbacks to add exposure, especially in sectors like Energy, Tech, Communication Services, Financials, and Utilities. These are favored for their strong balance sheets, steady earnings, and growth potential. While the rally may be driven by hopes of easing trade tensions, Wells Fargo sees quick deals with China or the EU as unlikely and expects continued volatility. Their 2026 S&P 500 target is 6,400–6,600.