US stocks have experienced a significant decline, and Truist believes that technical indicators suggest large-cap stocks are on the verge of a potential rebound.

U.S. stocks have lagged recently amid concerns over the Trump administration's trade policy, with the S&P 500 index falling 10% from its recent high to enter correction territory by Tuesday's close.

However, investment bank Truist said on Tuesday that some market indicators showed U.S. large-cap stocks were nearing a rebound. The bank had downgraded its view on U.S. equities to "neutral" in September, partly due to tariff uncertainty, but Keith Lerner, co-chief investment officer at Truist, said in a note: "Our stance hasn't changed. However, the short-term weakness in the market is becoming exhausted, and our research shows the market is in the vicinity of a rebound."