Bond King Bill Gross Predicts a "Little Bull Market" for Stocks and a "Little Bear Market" for Bonds| AiF insight

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Bond King Bill Gross Predicts a "Little Bull Market" for Stocks and a "Little Bear Market" for Bonds

Jun 26, 2025

Renowned bond investor Bill Gross recently issued a new warning: the U.S. bond market is likely heading into a “mini bear market,” while artificial intelligence (AI) will fuel a “mini bull market” in equities.

On June 24, Gross posted on social media that despite ongoing concerns such as tariffs and geopolitical tensions, AI will continue to drive stock market growth. He expects the U.S. economy to maintain a moderate growth rate of 1–2%.

U.S. stocks have already recovered from the sell-off in April that was triggered by so-called “reciprocal tariffs.” The S&P 500 has risen over 3% year-to-date, and the Nasdaq 100 has gained more than 5%, reaching a new all-time high this week.

Wall Street analysts believe that after retail investors took advantage of recent market dips to buy in, institutional investors will likely follow suit and increase their stock allocations.

Meanwhile, Gross sees little justification for a significant decline in interest rates from current levels. He points out that the 10-year U.S. Treasury yield typically runs about 1.75 percentage points above the Consumer Price Index (CPI), and is currently hovering around 4.3%, indicating limited room for further drops in bond yields.